A ratio chart is just one instrument divided by another, and it can surface relationships you'd never spot looking at either one alone. On this special, Tim Knight walks eight of them, the Nasdaq, the Dow, the Russell and the S&P each divided by gold, silver or palladium, and shows that across all eight, the same topping pattern keeps appearing.
The conclusion he draws is consistent: over the next two to three years, equities look set to drastically underperform precious metals. He's clear it isn't a call for tomorrow, and that a ratio falling can mean stocks down, metals up, or both, which is why he frames it as a pair-trade idea. He also acknowledges gold and silver have been beaten up for six months, which may be exactly the setup. This is his own read and not a recommendation.
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