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Articles tagged with: Gold

22 August 2011

Correlation of Gold to S&P 500 Plummets

Since July, the correlation of Gold to the S&P 500 index has fallen off a cliff. This behavior has highlighted the magnitude of the flight-to-safety trade that has propelled gold to record highs this summer. The chart below illustrates this dramatic de-coupling.

A common opinion held throughout QE1 & 2 was that equities were benefiting from an inflationary environment. This may be at an end:

The chart above was calculated using The RiskAPI Add-In, our unique software client which allows fund managers to access a whole spectrum of on-demand portfolio risk analysis calculations.

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