Wednesday, October 26, 2011
Gold & Stocks Uncorrelated Again?
Yesterday was an interesting day for Gold. During most of the crisis Gold has been a safe haven, going up when stocks go down and going down when stocks go up. This changed in September and this month. Yesterday stocks were down around 2% and Gold was up around 3%. It will be interesting to see if this is just an anomaly or if Gold is returning to its safe haven status but from an investment standpoint it doesn't really matter. We have long maintained that Gold should be treated like every other asset and be managed tactically. Meaning you should be in it when it is in an uptrend and out of it when it is in a downtrend.