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

ALL CONTRIBUTIONS

This Year’s Best Actively Managed ETFs
There are times when alpha can be sought most efficiently. Now’s that time. But times change. When the correlation index begins to rise, alpha will be even harder to harvest.
Read
Gold Miners Signaling Trouble
Is the wolf stalking the golden sheep? History says it might. Gold investors should assess their risk exposures here, just to be safe.
Read
EC What’s The Upside For Stocks?
With a breakout from more than three months of consolidation, equities seemed to have re-established some upward momentum.
Read
Best And Worst Performing Alternative ETFs
Alternative investments are supposed to diversify overall portfolio risk by providing uncorrelated returns. Ideally, adding an alternative allocation to more traditional investment exposures enhances returns and reduces volatility.
Read
Well, That Happened
We’re seeing volatility returning to the current market after scraping bottom for months. It’s a safe bet that volatility will be a market feature in the future.
Read
Yeah, Yeah … Another Stock Market Record
Volatility may be presently low but won’t stay low. When it eventually spikes upward, beta players – those invested in capitalization-weighted exposures to the broad market – are likely to take direct hits.
Read

Comments

Latest Comments
What’s Gold Really Worth?
2 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?
2 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?
2 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
1 to 3 of 3 comments

STOCKS I FOLLOW

TWEETS

PERSONAL BLOG

Latest Posts

Work Experience

Education

Publications