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Gold Is Beating Stocks: It’s Going to Get Ugly by Jason Simpkins

So far this year, gold has gained more than 8%. By comparison, the S&P 500 index has climbed less than 7%.

That’s not typical.

And it’s not a well-publicized fact, is it?

It seems like more analysts are talking about the eighth anniversary of the bull market in stocks, which we hit in March.

Well, let me share another interesting fact with you…

The average lifespan of a bull market is 57 months. Again, this one is now on its 98th month.

It’s the second-longest bull market in history, trailing only the 113 months that spanned from October 1990 to March 2000.

You might remember how that one ended — with the tech bubble bursting.

Indeed, after a decade-long run that broke new record highs, the NASDAQ Composite lost 78% of its value. It plunged from 5,046.86 to 1,114.11, burning millions of everyday investors in the process.

That’s how bull markets work. They go out with a bang; not a whimper.

Like an incandescent light bulb, they glow brightest just before suddenly blowing out.

Perhaps that’s why so many investors are jumping ship…

In late February, institutional investors had 100% of their portfolios in stocks. Just two months later, that’s down to just 70%. That means institutional investors are selling into the bull market — not buying.

Similarly, global investment management company BlackRock reported record-high withdrawals of $288 billion from its U.S. stock funds in 2016. That tops even the $218 billion that fled funds back in 2008.

Conversely, Bank of America Merrill Lynch last year reported its longest run of gold fund inflows since 2009.

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Name Last Change
DOW 24670.10 1.29%
S&P 500 2753.17 0.75%
NASDAQ 7717.67 0.38%
TSX 16325.22 0.36%
TSX-V 751.40 0.00%

Resource Commodities

Name Last Change
Gold 1276.17 0.18%
Silver 16.32 0.67%
Copper 3.10 0.040
Platinum 869.50 1.78%
Oil 65.85 1.20%
Natural Gas 2.95 2.41%
Uranium 23.00 0.55%
Zinc 1.45 0.00%


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