Understanding the Ratio
A recent study compares real assets like gold and commodities with financial assets like stocks, bonds, and deposits. It shows a simple ratio between the two.

This line helps us understand which type of asset is doing better over time. When the line goes down, financial assets perform better. When it goes up, real assets grow faster.

What Happens When the Line Moves
Both real and financial assets can grow at the same time. But the key point is speed. If real assets rise faster, the ratio goes up. If financial assets grow faster, the ratio falls. This movement gives a clear idea of where the money is flowing in the market.

Patterns from the Last 100 Years
In the last 100 years, this ratio has shown some strong patterns. There were three major times when real assets performed better for long periods. These phases lasted for many years, sometimes even more than a decade. These were not short-term changes, but long cycles.

What Triggers These Cycles
These shifts usually happen during big global events. Financial crises, wars, or major changes in economic systems often push real assets higher. One example is when the gold-backed system ended in the early 1970s. This led to high inflation and boosted real assets.

Modern Market Changes
After the mid-1970s, the world saw a strong rise in financial markets. Later, global growth, including the rise of large economies, supported financial assets even more. After 2020, the trend seems to have slowed down, and the ratio has become flat.

What Could Come Next
Now the big question is whether a new cycle for real assets is about to begin. History shows that such cycles can last 10 to 15 years. If a similar pattern repeats, real assets may again perform better in the coming years.