Courtesy of Doug Short.
Commodity expert Dennis Gartman certainly struck a nerve in the financial community as word hit the street of his call on gold in the latest Gartman Letter (subscription required). Here is the gist, as reported by Bloomberg:
|“Since the early autumn here in the Northern Hemisphere gold has failed to make a new high. Each high has been progressively lower than the previous high, and now we’ve confirmation that the new interim low is lower than the previous low. We have the beginnings of a real bear market, and the death of a bull.”|
For a bit of historical context, here is a 20-year overlay of Gold and the Dollar.
Here is an equally interesting overlay of Gold and the S&P 500.
Now let’s take a long-term look at the Dollar and the S&P 500.
And finally, a three-way overlay.
Given the fundamental economic crisis in Europe, questions about the sustainability of growth in China, and the slow-motion boomer demographic shift in the US, the prospect of secular changes in these three asset classes (Gold, the Dollar and US equities) would not be unexpected.