The Dichotomy Between Equities and Gold – A Tale of Two Alternate Inflation Universes

by GoldMoney Insights
Gold Money

Equities are pricing in vastly different inflation expectations than gold. We think stocks are pricing in massive future monetary expansion while gold is only pricing in what central banks have done so far. Whether equity prices correct first, giving the Fed the pretense to ramp up the stimulus, or whether the Fed keeps expanding even as stocks keep moving higher, we expect gold to outperform stocks going forward over the medium term.


The past few months have been a period of extremes in financial markets across the globe. Crude oil future prices went negative, the Fed launched “unlimited QE” and equities have had the fastest crash in history, followed by the steepest recovery.

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