All we keep hearing is that the Fed’s monetary policy measures are a “stimulus” and some say that they cause inflation or are even hyperinflationary and that’s why you should own gold.
Well, if you look at the ratio of gold to the S&P 500, you’ll see anything but that relationship.
During QE, gold barely stayed even with stocks and during Op-twist, gold got crushed.
Only in the brief time that the Fed was NOT INVOLVED did gold go up. And it’s easy to understand why…the Fed’s monetary ops remove income from the economy and, therefore, it can’t be inflationary.