Thursday, September 6, 2018

Gold's bear market looks worse relative to S&P 500

“Gold investors have good reason to be frustrated” with the precious metal after a seven-year bear market, Michael Batnick, research director at Ritholtz Wealth Management LLC, wrote Tuesday in a blog post. The price of gold was down 38 percent as of Wednesday from its September 2011 peak, according to data compiled by Bloomberg. The metal’s ratio to the S&P 500 Index fell even more sharply, 74 percent, and reached its lowest level since December 2005. To be sure, Batnick wrote that gold can still be “a very effective diversifier” because it usually doesn’t track moves in stocks and bonds.

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