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This little-known connection between gold and platinum spells big trouble for stocks
A sharp U.S. stock market correction is likely within the next 12 months. I base this prediction on the recent plunge in the gold/platinum ratio, which researchers have found to be an excellent predicter of the stock market's subsequent 12-month return. From its April high to its July low this year, the ratio fell by almost 40%, as you can see from the chart below. The study that first discovered the market-timing potential of the gold/platinum ratio was published in 2019 in the Journal of Financial Economics. Entitled "Gold, Platinum and Expected Stock Returns," the researchers found that when predicting the ... (full story)