Chart of the Day - Monday, January 4th, 2021

Today’s Chart of the Day was shared on Rafa Marulanda (@rafatrade93). It's a ratio chart of Gold vs. US Treasury Bonds ($GC/$TLT). Ratio charts are great because they help to simplify opportunity cost for investors. As a reminder, when the line is rising it means Gold is outperforming Treasuries and vice versa. Both of these assets are perceived as safe-havens. But as Rafa points out, Gold looks like the more attractive safe haven at the moment. As you can see, this ratio is breaking out of a multi-year base in favor of Gold. You already know what they say about big bases - "the bigger the base, the higher in space." Also, January has historically been the best month of the year for Gold. In a comment to The Chart Report Rafa said, "You have to listen to the market, and right now, the market is making a clear statement. Gold is the better bet here as far as safe-haven assets go."