Gyroscopic Investing

Apologies if this has (most likely) been discussed here before, but: Anybody else feel like gold and stocks move in tandem more often than not?

Is it possible that gold is now more of an investment asset than it has been traditionally (an alternate currency)?  So, would this explain gold behaving more in tandem with the stock market and as less of a traditional counterbalance?

Thoughts?

Coffee wrote: Apologies if this has (most likely) been discussed here before, but: Anybody else feel like gold and stocks move in tandem more often than not?

Is it possible that gold is now more of an investment asset than it has been traditionally (an alternate currency)?  So, would this explain gold behaving more in tandem with the stock market and as less of a traditional counterbalance?

Thoughts?

I think it seems that way lately (last several years), but it's probably a correlation that will change with time. 

I personally think that market participants are more worried about deflation than inflation. In that environment it would make sense for gold and stocks to move in tandem.

melveyr wrote: I personally think that market participants are more worried about deflation than inflation. In that environment it would make sense for gold and stocks to move in tandem.

Yep. Both gold & stocks are supposed to be affected by swings from (anticipated) deflation to (anticipated) inflation and vice versa, I guess.

For what its worth, it seems when I look at the daily fluctuations of GLD/VTI/TLT (which is a very bad habit that I'm trying to break), it often seems 2 of the 3 cancel each other out and the other is either up or down doing its own thing...  and it is not always VTI/TLT that cancel each other (although GLD does often seem like the crazy uncle of the family)...  You just never know who is going to save the day (or not)...