5min chapter

The Macro Trading Floor cover image

Investors Are "Totally Unprepared", And This Is Why | Bob Elliott

The Macro Trading Floor

CHAPTER

Alpha Trading

Gold is really a trade off between non interest sparing money and interest baring money. And so when you get environments of rising real interest rates, in particular rit, which is basically adding to the the real return of cash, you typically would expect to see some under performance of a of gold relative to cash. But it's not as a as something that's going o goneratically out perform in the middle of a normal inflationary or disinflationary cycle. The reason why you hold gold is because it helps protect the tail risk, whether it's an extreme deflationary environment or an extreme inflationary environment. It's just, it's an important diversifier that does particularly well

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