I’ve been struggling to understand why the markets seem to shake off everything—terrible economy, bad macro setup, commodity prices, etc., and just keep going up.

Then I created this chart, which may explain that we are not (yet) in a real bubble and there is still a ways to go.

S&P to Gold ratio over the last 100 years. The log chart makes it looks a bit more bubbly but in reality we are not close to the historical popping points.

I may have to change some thinking…

Good luck