The Daily Gold, Released on 10/18/22
In this video, we look at historical performance of Gold and the stock market in order to determine when the two assets will decouple. There have been several different periods in which the two assets decoupled and some good examples of the timing of the decoupling during a bear market. In looking at some of the worst bear markets in stocks, we find that Gold and/or gold stocks tend to decouple from the stock market around 11 to 12 months after the bear market began. The current bear market began in late December 2021. Fed policy shifts typically occur around or slightly after the decoupling begins. Some of the best bull markets in precious metals occurred during the economic expansions after the stock market began a secular bear. The examples are the early to mid 1930s, early to mid 2000s and to a lesser degree, the early 1970s. However, note that the bull markets in Gold and gold stocks. began before the stock market bottomed and recession ended.
Jordan Roy-Byrne, CMT is a Chartered Market Technician and member of the Market Technicians Association.. He is the publisher and editor of TheDailyGold Premium, a publication which emphasizes market timing and stock selection for the sophisticated investor, as well as TheDailyGold Global, an add-on service for subscribers which covers global capital markets.