The fundamental driver for is declining real interest rates or expectations of a decline in real interest rates. Fed rate cuts or accelerating and rising inflation expectations lead to declining real interest rates. In the current macro-market context, the most important indicator is something different. Recently, we wrote why the real bull market has barely started. A huge bull market in Gold precludes the stock market from performing well. Sure, there can be some periods when both perform well together. These include the early to mid-1960s, 2003 to 2007, 2009-2010, and 2020. However, given the structure of the Gold market, the next leg higher will include dramatic outperformance against the stock market. The Gold to ratio (bottom right) needs to break past a 7-year range (resistance at 0.70). That break is likely to coincide with Gold exploding out of its cup and handle pattern and past $2,100/oz. The cup and handle pattern is super bullish and there’s little chance Gold is going to bust...read more...