How will be the year 2011 for the Stock Markets and Gold ?

The year 2008 saw the steepest correction and the year 2009 saw the fastest rally and 2010 saw a minor rally in terms of percentage appreciation. Gold has been in bull run since 2003 and it is making all time highs every month. Now gold is trading near 1400 USD.

Now the million dollar question is, will the bull run in Stocks and Gold continue in 2011 ? For the first time in history, Gold and Stocks are in bull run simultaneously which has puzzled many  market pundits regarding the validity of the long believed theory the stocks and gold would always in different direction. Meaning gold will be bullish if the stocks are bearish, and Gold will be bearish if stocks are bullish.

The behavior of any market is cyclical. A bull market will be followed by a bear market and a bear market will be followed by a bull market. And also the magnitude of the bull market will depends upon the magnitude of the bear market and vice versa. Likewise, a multiyear bull market will be followed by a multiyear bear market and vice versa.

Considering this fact, the present bull market in stocks and Gold was started around 2003 and they have been in bull market for the past 7 years, the magnitude of the next bear market is also going to be a big one engulfing many years. The present bull run in the stocks and gold is likely to top out near 2011. So we can expect a top from this year.