Equities / Commodities – 1970-2018 https://sprott.com/insights/gold-is-rarely-this-cheap/
Where we are right now – https://www.tradingview.com/x/8OWlsplx/
From the Sprott link, 2018:
“This story has been gaining significant traction lately: Commodities, relative to equities, are at their most undervalued in decades. Making the rounds are variations of this chart depicting the ratio of the S&P GSCI Total Return Index (SPGSCITR),1 a basket of commodities, to the S&P 500 Index (SPX).2 It paints a compelling picture of where commodity prices are in relation to U.S. equities. The long-term median of this ratio is 4.1. The ratio today hovers near 1.0.
This may translate into a significant investment opportunity in commodities given reversion to the mean.”
(I added this paragraph so my post wouldn't be flagged as low effort)
Cheers!
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