Blake ... September 21 is the FOMC meeting … and why is it important…?
For the past year and a half there’s been a strong correlation between the Naz and the PoG. It never used to be that way; back in the bad old days—when the shit hit the fan you could always find refuge in gold stocks. The gold indices where negatively correlated to the broad markets, and gold stocks themselves supported a negative beta.
It’s not the case anymore.
What’s been driving the PoG (and the Naz) is cheap money, and as long as the Fed is accommodative they’ll both rise. It all points back to Greenspan comments about his concern for deflation. They now believe they’re teetering between the two (inflation/deflation)—not too hot, not too cold. Hence the “measured” pace of the tightening.
But it’s tightening nevertheless—and I expect the PoG to get whacked again.
News 
Market Data 
Discover 
