Monday, February 15, 2010

Gold Stopped Being A Hedge In 2009

Excerpt:

The correlation between SPY and GLD has been nearly 0.95, compared to nearly zero historically. As shown in the chart below, GLD and SPY have moved in lock step through the first six weeks of 2010



Moreover, gold started to correlate with stocks sometime during 2009:



http://www.businessinsider.com/gold-stopped-being-a-hedge-in-2009-2010-2

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