At Gold's 2011 peak, the stock market's valuation was historically average or cheap compared to the previous 20 years. Now it is near a major peak, again. Typically, Gold outperforms stocks after valuation peaks in stocks, which is where the market is headed. The trigger will be a breakout in inflation. The 2011 peak in Gold also occurred after 12 years of annual gains in big runs in nominal and real terms. Judging from the Gold to S&P 500 ratio, Gold's current bull market has barely even started.
Jordan Roy-Byrne, CMT is a Chartered Market Technician and member of the Market Technicians Association.. He is the publisher and editor of TheDailyGold Premium, a publication which emphasizes market timing and stock selection for the sophisticated investor, as well as TheDailyGold Global, an add-on service for subscribers which covers global capital markets.