Gold May Resume Losing vs. Stocks Over Next 100 Years Since 1927, the price of gold has dropped about 98% vs. the S&P 500 Total Return (SPXT), but flatlined vs. beta since 1997. The metal may face a lose-lose, at about 2 now vs. SPXT from a base of 100 a century ago. The ability of humans to innovate and profit, along with the survivor bias of SPX, should prevail if history is a guide. However, the stock index at about 2.4x GDP on Sept. 11 -- above any year-end level since 1928 -- may emphasize the risks of having risen too much. It was the SPX/GDP drawdown from 1.5x in 1999 that coincided with the gold/SPXT ratio's rise from a trough near 1 to about 6 in 2011. That gold/SPXT bottomed about 27 years ago, and that roughly 21 years separated the nadirs in 1928 and 1969, may emphasize the historical significance of current conditions. An ebbing tide could lower all boats. On the Bloomberg here: https://blinks.bloomberg.com/news/stories/tl3ahekgzaiu {BI COMD} #gold #stockmarket @BBGIntelligence(Mike McGlone)