The Gundlach Ratio

Steve Goldstein introduces us to the “Gundlach Ratio,” named after Jeffrey Gundlach.

The ratio is copper divided by gold. It makes sense.

Gundlach tracks the ratio of copper prices to gold. Gundlach believes in the predictive value of the ratio since copper is sensitive to swings in the economy, while gold climbs when investors get frightened.

As the chart shows, copper is starting to climb relative to gold, which should imply that bond yields will rise, meaning bonds will fall in value.

Works for me.

The ratio has tracked the 10-year Treasury pretty closely for the last few years.

Posted by on December 11th, 2019 at 11:37 am


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