In this video, I discuss whether gold or stocks (S&P 500) will outperform over the coming decade.
There seems to be a rough pattern where stocks beat gold (as they did in the 1990's), followed by a reversal where gold beats stocks (as it did in the 2000's). Stocks have outperformed gold since about 2013, and it looks like this outperformance is about to reverse for the coming decade.
We just got a golden cross (bullish moving average crossover) in the Gold/SPX ratio weekly chart, which suggests that gold will outperform stocks over the coming decade.
Geopolitical tensions between the U.S., China, and Russia, as well as increasing wealth inequality and social unrest in the U.S. all suggest other reasons why scarce hard assets will outperform financial assets in the coming turbulent decade.
I still expect stocks to go up over the next 10 years, due to massive money printing from the Federal Reserve. But stocks may not have positive net returns when taking into account the devaluation of the U.S. dollar over this period. Something similar has been happening in Zimbabwe over the past few years, where the stock market is up massively (650% in 2020 alone), but the local currency is down so much, that one has still lost real purchasing power by being in Zimbabwe stocks.
The only way to preserve purchasing power in the U.S. will be scarce real assets like real estate, gold, and Bitcoin.
Not investment advice! Consult a financial adviser.
Sale of U.K. gold reserves:
https://en.wikipedia.org/wiki/Sale_of_UK_gold_reserves,_1999%E2%80%932002
Washington Agreement on Gold:
https://en.wikipedia.org/wiki/Washington_Agreement_on_GoldEuropean Sovereign Debt Crisis:
https://www.investopedia.com/terms/e/european-sovereign-debt-crisis.aspZimbabwe stock market:
https://tradingeconomics.com/zimbabwe/stock-marketMatthew Kratter is the author of the Amazon best-seller "A Beginner's Guide to the Stock Market":
https://www.amazon.com/Beginners-Guide-Stock-Market-Everything-ebook/dp/B07S31TBF5If you like my teaching style and would like to learn more about investing and trading stocks, options, and futures, be sure to check out my online courses here:
https://www.trader.university/joinUse this secret coupon code to get a discount: YT99
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https://www.youtube.com/watch?v=uJx8mkBJVTw