Bank Stocks Signaling Higher Gold Price?
This year, bank stocks have traded down hard, performing much worse than broader equity indices. This is usually a bullish leading indicator for gold.
Published
January 16, 2015
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Bank Stocks Signaling Higher Gold Price?
This year, bank stocks have traded down hard, performing much worse than broader equity indices. This is usually a bullish leading indicator for gold. Banks are at the black heart of the conventional fiat monetary system. When bank stocks do well, it tells you that the monetary system is strong and confidence in it is high. And when bank stocks trade poorly against other stocks, the message is that systemic risks may be rising and that's good for gold. See this chart:
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