Don’t look for a reason for this mid-virus rally

Bloomberg/John Authers/1-29-2020

Ed Stein cartoon showing a chart of stock and gold diverging with an investor thinking 'decisions-decisions'
“[P]erhaps it is best to say that the coronavirus provided an excuse to sell stocks, rather than a reason. And with valuations looking excessive, particularly in the U.S., selling some stock is appealing. It is never a bad idea to sell something for more than it is worth.”

USAGOLD note:  We cited this in-depth piece in yesterday’s DMR. Auther’s observation that the virus is more of the excuse for selling stocks than the reason might be applied to buying gold as well.  He goes on to explore the overvaluation of stocks as the more compelling, underlying reason for paring holdings.

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