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.
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