GOLD VS OIL - OIL REMAINS THE CHEAPEST 10 months after the below note, oil has outperformed gold by 100%. Having said that, oil should now be expensive relative to gold? Not really. Indeed, with a gold-to-oil ratio (below) 1.5 standard deviation above its long-term trend, a convergence towards it would generate another +88% excess return for oil, while undershooting to reach -1σ would bring this outperformance above +300%. While none can predict what will happen, this lets me think that oil's risk-reward remains far more attractive than gold's at the moment. #OOTT $XLE $XOP $PBR