What is the rapid rise in the price of Gold telling us ? Inflation or Imminent StockmMarket Crash ?
Chart: http://www.kitco.com/charts/popup/au24hr3day.html
John Husselbee, who runs "multi-manager" funds for Liontrust, and has been a fund manager for 30 years, said four key indicators were worth keeping an eye on.
“What set the great crashes apart from my perspective were changes – before the market dropped – in what I deem the key indicators of fear: the 'Vix' index, widely known as the fear index; the gold price; the US dollar; and the yield on US government debt,” he said.
“In 1987 and 2008 the first three rose, while yields on US government bonds shrank [meaning that their prices rose] as investors fled to safety. Stock markets are driven by fear and greed, and each of these early warning indicators was a reflection of the fear at the time."
I don't know much about how gold's price would affect things, why would it possibly indicate a crash?
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John Husselbee, who runs "multi-manager" funds for Liontrust, and has been a fund manager for 30 years, said four key indicators were worth keeping an eye on.
“What set the great crashes apart from my perspective were changes – before the market dropped – in what I deem the key indicators of fear: the 'Vix' index, widely known as the fear index; the gold price; the US dollar; and the yield on US government debt,” he said.
“In 1987 and 2008 the first three rose, while yields on US government bonds shrank [meaning that their prices rose] as investors fled to safety. Stock markets are driven by fear and greed, and each of these early warning indicators was a reflection of the fear at the time."
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Keep an eye on those 4 .... Vix, Gold, USD, Yields on USGov Debt
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Gold is a dollar hedge
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Same cycle the past few years, but this might go boom!
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Great work very interesting post Thank You for sharing
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It's funny, but for the past 9 months I've been so focused on the price for cryptocurrencies, I'd completely lost track of the price of precious metals.
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Me too.... it’s good to just buy some and forget about it.... that way you don’t sell when it drops.
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