The Valuation Cycle of the Overall Equity Market Often Follows the Gold Cycle Itself: Chart

A major macro shift is now developing. The valuation cycle of the overall equity market often follows the gold cycle itself, and consequently, commodities are highly interconnected. Historically, such excessive levels in the total market cap of overall US stocks as a percentage of GDP would suggest that a gold cycle, and a secular run-up in commodities, are both underway.