Gold is an important asset class that is good to own during bull and bear markets although a small portion of a well-diversified portfolio should suffice. During bull markets in equities gold may not earn high returns. However during bear markets or when uncertainty plagues the market such as now then gold is a great …
Continue reading ‘Annual Returns of Gold vs. Other Assets 1980 To 2019: Chart’ »
Gold prices are climbing to record highs this year. Prices reached $1,900 yesterday in the futures market. This is the highest levels since 2011. Gold prices are in a tear this year due to coronavirus-induced recession. The yellow metal may continue to rise as investors seek safe-heaven assets in uncertain times such as now. Though …
Gold offers excellent protection to a well diversified portfolio during market crashes. Gold, as an asset class is not a great tool for generating income. However when markets head south most investors dump stocks and try to seek refuge in assets like gold. In general, gold tends to perform well during crises. For example, during …
Continue reading ‘Gold Offers Portfolio Protection During Drawdowns’ »
Gold is a safe heaven asset class. During adverse market conditions for stocks gold tend to perform better and vice versa. To put it another way, bear market in stocks can be bull market for gold and vice versa. The following chart shows the long-term return of Gold vs. S&P 500: Click to enlarge Source: Is …
Continue reading ‘Gold vs. S&P 500 Long-Term Returns: Chart’ »
Investors tend to seek safe haven assets during periods of economic contractions.During the last three recessions, gold easily outperformed stocks and also bonds as shown in the chart below: click to enlarge Source: The pros and cons of gold, Blackrock Related ETF: SPDR Gold Trust (GLD) Disclosure: No Positions