Friday Charts: The Gold-Bug Crisis

 | Oct 11, 2013 09:00AM ET

That means the long-winded analysis is out. (Hallelujah!) And some carefully selected charts are in. (Amen!)

So without further ado, check out these snapshots on the scariest development in the gold market… one correlation we can’t afford to ignore… and an appalling example of why the government can’t possibly be trusted with our money.

Gold Bugs Beware
It’s official. The next chair of the Federal Reserve is going to be Janet Yellen. So come January, Ben Bernanke is officially out of a job.

You know what else is out, too? Evidence of a near-perfect correlation between growth in the Fed’s balance sheet and gold prices.

Gold And Fed Balance Sheet

Talk about a crisis for gold bugs! Guess they’ll justify clinging tight by swearing up and down (again) that a nasty bout of hyperinflation is imminent. Because, of course, selling is never an option…

Stocks and Earnings: Still in Lockstep
Speaking of correlations, here’s one that certainly hasn’t broken down: stocks and earnings.

S&P 500 And Earnings

As Dan Greenhaus, Chief Global Strategist at BTIG, says, the chart above shows “quite convincingly” that stocks aren’t in bubble territory thanks to too much government intervention.

Instead, they’re moving in lockstep with trailing 12-month earnings. (As they should.)

Rest assured, the strong correlation holds true on the micro level, too. Here’s the proof…

Remember how I told you to avoid Ruby Tuesday, Inc. (Original post

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