munKNEE.com Your Key to Making Money
There appears to be a precise inverse relationship between gold and the stock market during stock market crashes such as those in September 2001, September/October 2008, and July/August 2011 . Gold not only rallied, but it rose significantly. This could be very useful information if, as I expect, we see another stock market crash, possibly again in the September/October time period.
The above edited excerpts, and those comments that follow, come from the original article by Robert Mchugh PhD.
In addition, U.S. Bonds rose substantially and quickly during stock market crashes of the past. They likely will again when the next stock market crash occurs.
For charts on each time period and the specific price increases that occurred go here to read the original article.
Have your say on the subject via:
We’d like to know what you have to say.
Related Articles from the munKNEE Vault:
1. Investors Should Choose Silver vs. Gold During Financial Crises – Here’s Why
The notion that gold is the premium SAFE HAVEN during times of financial crisis doesn’t hold true if we go by the actual data. When the world stood at the brink of a total economic and financial meltdown in 2008, investors overwhelmingly choose silver over gold, which means, when the next much more dire financial crisis appears, physical silver demand will more than likely totally overrun supply. Got Silver? Read More »
2. U.S. Dollar Crash Coming – Go For Gold!
Where the gold skeptics have their argument wrong is their belief in the almighty dollar. If the U.S. dollar crashed then gold prices would undoubtedly surge as the only credible rival safe haven currency, except perhaps the Swiss franc and the crashing of the U.S. dollar is not an unrealistic expectation. Let me explain. Read More »
3. Does Gold Really Act As ‘Insurance’ In Times of Financial Market Stress?
This article takes a step back and looks at the bigger picture related to gold including long-term trends, and sets out some key characteristics of gold which are worth considering when (or if) allocating some part of an investment portfolio to the world’s favorite precious metal. Read More »
4. Protect Your Wealth From Possible Black Swan Events – Here’s How
Every investor owes it to himself to make sure that his investments will not be completely wiped out in the coming financial Armageddon by providing an adequate level of insurance against risks that prey upon the value of paper investments i.e., physical gold held by the investor himself on his own premises. Read More »
Lets not forget also that gold moves opposite to how the dollar moves. So in recent years the stock market has really been bullish overall. But, if a crash happens you would expect gold to really take off. This could be in the future ahead…