S&P 500 priced in gold and oil.

Is the stock market going up? Or is it just other things than the consumer price index getting more expensive?


Short SPX, Long Gold, one of my major trades for 2012 now that the next leg in central bank activism has been initiated and equities generally have squeezed away most of the risk premia.


Short SPX, Long Gold.


 



Short SPX, Long WTI

Ritholtz posted a relating chart with gold compared to the consumer price index. That is a flawed measure in my opinion since the consumer price index will never reflect inflation at this stage in the printing cycle.

 

http://www.ritholtz.com/blog/2012/09/is-gold-cheap-or-expensive-look-to-china-india/