Journalist
Contributor's Links: Wealthmanagement.com

Brad Zigler's stints as a contributing editor for the Corporate Communications Broadcast Network, the Journal of Indexes, and CRB Trader set the stage for his role as managing editor of Hard Assets Investor and later as alternative investments editor of Registered Rep. magazine, the most ... more

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A Cracking Good Time In The Oil Business
It’s often said that the best way to make a small fortune in the oil business is to start with a large one.
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Is Our Exuberance Irrational?
The S&P 500 has now reached a bullish price objective at the 2,520 level set back in May. The thirst for stocks hasn’t been slaked, however.
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ETFs Gauge Consumer Confidence
The ratio’s been a fairly good bellwether of equity market sell-offs that accompany or precede economic slowdowns.
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Preferred-Stock ETFs Offer Plenty To Like
The trouble with preferred shares is that it’s not easy to build a portfolio position with them. For one thing, not every company issues preferred stock.
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Real Rates Set The Pace For Gold
If real rates rise, gold likely falls. Bullion heads higher as real rates decline. Real rates are portrayed inversely on the left-hand scale while gold prices are indexed on the right hand.
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For Stocks, Diagnoses Come Before Prescriptions
The exchange-traded fund market provides some diagnostic tools that we can use to assess generalized stock strength. Case in point: Investors’ appetite for stock risk can be metered—oddly enough—by a ratio of two fixed-income ETFs.
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Comments

Latest Comments
What’s Gold Really Worth?
3 years ago

John -

The "relationship" posited in the article is just that, a "relationship." It's a ratio, not a correlation. A correlation is a distinct statistical construct.

You may very well be right about gold as a hedge against inflation "in the long run." The question is: "What's a long run?" Years? Decades? Millennia?

The fact that an ounce of gold could buy a man's suiting now as in ancient Rome doesn't help someone planning for a nearby retirement.

In this article: GLD
What’s Gold Really Worth?
3 years ago

John -

Yes there is an indirect relationship between bullion prices and the US dollar. That shouldn't be surprising since gold is benchmarked in dollars.

I wouldn't characterize the gold market as being "more stable." There's in fact, a lot more volatility in metals than in currency.

As for the correlation of bullion and CPI, studies have shown that there isn't a statistically significant relationship between the two.

In this article: GLD
What’s Gold Really Worth?
3 years ago

Kate -

The prices tracked in the article, to make them directly comparable to once-a-month CPI, are monthly averages.

GLD, in fact, is highly (>99%) correlated to bullion on a day-to-day basis. The only tracking error is due to the metal sales financing the trust's fees (0.40% per year). That said, the equally well-correlated iShares IAU gold ETF, with a lower (0.25%) expense ratio, should fare even better.

In this article: GLD
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