Citi On Why S&P 500 Should Outperform Gold

A contrarian trade looks tempting.

Switch out from the rabidly bullish S&P 500 (INDEXSP:.INX), and into gold - possibly the most loathed asset in recent times.

A modicum of a reaction is manifesting itself in each of the charts above of the S&P 500 as well as Gold (shown inside the red and green ellipses) respectively.

Is it time to book profits in overbought equities and take a flier on trash-canned gold?

Equities will outpace gold

Not yet, say Citi Research analysts Tobias M Levkovich, Lorraine M Schmitt and Christina Wood in their research note on the Chart of the Month for January.

“Despite the inverse performance of stocks...