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Does $1,000 Gold Signal Stock Correction?

Source: http://feedproxy.google.com/~r/qvmgroup/yrMF/~3/MsB49iVperE/6029
Posted on Tuesday, September 8th, 2009 | In Investing Lessons, Market Commentary
Contributed by: Richard Shaw (http://www.QVMgroup.com) -

Does gold rising and climbing to $1,000 signal a pending stock correction?  No.

A correction may occur, but the long-term record does not support the idea that gold rises predict stock declines.  The weekly 20-year chart of the S&P 500 versus the price of gold bullion shows the absence of reliable predictive value about stocks from gold price behavior.

click image to enlarge

goldspx

Relevant Securities: SPY, GLD

Disclosure: We own both SPY and GLD.

Richard Shaw
QVM Group LLC

Last 5 posts by Richard Shaw





About Richard Shaw (http://www.QVMgroup.com)
Richard is a principal of QVM Group LLC, a fee-based investment advisor based in Connecticut with clients across the country. He provides investment coaching to "do-it-yourself" investors, and manages portfolios for those who prefer not to make their own decisions.

His investment approach is based on value, asset allocation, benchmarking, expense control, risk management, customizing portfolios to each client's specific circumstances, and regular communication about strategy and performance.

The QVM Group team also provides municipal refinance services, strategic business planning and financial analysis service for new ventures, private acquisition analysis, and custom investment research.

Richard's extensive experience, includes serving on the Board of Directors of Aberdeen Asset Management PLC (London Stock Exchange: ADN), membership on the Board of Directors of Phoenix Investment Counsel (renamed Virtus Investment Advisors), a U.S. pension manager and investment advisor to the Phoenix Funds (renamed Virtus Funds), as well as serving as Managing Director of a series of offshore investment funds based in Luxembourg. He has led institutional asset management sales and had overall responsibility for management of a U.S. mutual funds broker-dealer.

He was a charter investor and member of the Board of Directors of several internet companies, including Lending Tree prior to its IPO. He is a graduate of Dartmouth College.

QVM Group LLC is a Registered Investment Advisor.

Visit the QVM Group website http://www.qvmgroup.com/QVMinvest/

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