Some perspective on gold, perhaps contrary to popular thinking
“Contrary to most investors thinking that gold is primarily an inflation hedge, thinking about gold and its correlation to long-term equity returns, my own opinion is that gold is really a hedge for sub-par equity market returns, and gold and the GLD really adds ‘alpha’ (so to speak) when long-term equity returns are below-average.”
USAGOLD note: The thing about stock market declines and gold market eruptions is that very few in the aftermath of either can claim that they “called” it. The best strategy is hedge ahead of time in the full realization that stock market busts do occur unannounced and so do gold market booms.
Repost from 11-29-2019