Which has been a better investment in 2016 YTD?
Here's the answer: Gold
Gold ETF is up 20% Year to Date whereas Nifty is down 1% YTD. That's a HUUGE outperformance in Gold.
Here's GoldBees Chart
It has been a one way move for Gold this year and it has surprised many.
Here's NiftyBees Chart
It has been a Yo Yo year for Nifty. First - it had a great fall and then a stunning rise but net net - it's marginally down
What's ahead in 2016?
According to data from Bloomberg, hedge fund bets on gold are at their highest levels since 2011
I consider the above as contrarian indicator.
Past Performance is not a best indicator of the future. Nifty is poised for major move if it crosses 7973 (The chart above is of NiftyBees and not Nifty). On other hand - Gold can suffer if USD starts strengthening. So, even though Gold has been a great performer so far in 2016 - there are no visible signs that it will continue to strengthen. Having said all the above - Market is always full of weird possibilites and one should keep eyes and ears open to any scenario.
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Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers