Gold Has not YET Responded to Negative Rates

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Michael Gayed on Palisades Gold Radio

Tom welcomes returning guest Michael Gayed, Portfolio Manager at Toroso Asset Management, to the show. Michael is the author and publisher of the Lead-Lag Report.

Michael notes that this year has been remarkable in many ways. Treasury yields since March have been grinding lower, which indicates a risk-off market. Likewise, lumber to gold has tanked. However, utilities have been underperforming, which is concerning. All of these crashes are occurring in the context of trillions in stimulus. Small caps have underperformed along with emerging markets since February. However, the S&P continues to grind higher. What if the Fed is correct about inflation being transitory? That could suggest a big downside surprise as all of the ordinarily tight correlations seem to be breaking.

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