Commodities (OW) (GUNR-US, DBC-US): rising gold-to-bond ratio suggests more strength.
Monitoring the battle between reflation and disinflation forces is paramount when it comes to choosing between cyclical or defensive investment vehicles. One ratio we use to capture this dynamic is the gold-to-bond ratio (G/B). When the latter is rising, reflation forces are winning and commodities tend to outperform bonds. The opposite is true. Despite nearly … Read more