The Global Wealth Rotation Just Started

TL;DR

Gold is outperforming every major asset class because sovereign debt has exploded past sustainable levels, triggering a historic capital rotation away from financial assets.

Key Points

• 1.Capital Rotation Evidence (CRE) chart by Northstar Charts shows every major financial metric — S&P 500, NASDAQ, dollar, M2, inflation, Russell, Wilshire — is now in a bear market relative to gold simultaneously, a historically rare signal.
• 2.Historical precedent: Similar rotations occurred in the 1930s (gold dominated 5–7 years, stocks didn't recover until 1954), the 1970s (gold up 2,000% from 1971–1980), and post-2001 dot-com bust (gold went from ~$250 to $1,900 by 2011). These events typically last 5–10 years.
• 3.Central banks are buying physical gold at the fastest pace in modern history, and gold now makes up a larger share of official reserves than it has in years, replacing US Treasuries as the preferred neutral asset.
• 4.Bitcoin's bull cycle appears over — it peaked near $126,000, then broke below the critical 50-week moving average (~$102,000–$103,000), historically signaling the start of a bear market and a move toward the 200-week moving average (~$58,000, possibly as low as the high $30,000s).
• 5.Bitcoin cycle timing pattern: Past cycles peaked in Q4 (2013, 2017, 2021), bottomed roughly 364–371 days later, and took ~1,550–1,600 days from low to high. This puts a potential 2025 bottom anywhere from May to October.
• 6.Bitcoin is now heavily financialized via ETFs, derivatives, collateral lending, and miner financing — meaning its price is suppressed by paper markets in the short term, similar to gold post-2004, though gold eventually broke out anyway.
• 7.Andre's personal strategy: Rather than timing the rotation perfectly, he holds a diversified mix of Bitcoin, S&P 500, dividend stocks, and cash (sold rental property to eliminate debt), dollar-cost averaging across potentially undervalued assets instead of going all-in on gold.