The “coordinated smashdown of gold and silver” was on everyone’s mind this week, but is it true? Did the price of paper gold (futures) divorce from the price of physical gold? One thing is for sure, the dollar gained from 21g to over 22g of gold on Friday. A 5% move in the world’s biggest paper currency is a big move.
By Stock Croc:With the recent volatility prevalent in the international stock market, leading investors are in a fix when it comes to investing in a safe stock. As of late, many investors have found it an ordeal to determine which company has the capacity to pay long-term returns on investment and which does not. This is because stocks investments have traditionally involved a high level of planning and assessment because of the manifold risks involved.
By The Gold Report:Market volatility sets the stage for price upswings as well as downswings, according to Michael Gray, equities analyst of Macquarie Capital Markets, and the recent gold price drop should be seen as a "pause" in the bull market. Management teams are pausing as well, to focus on earnings and shareholder return, rather than growth.
By Kapitall:Do you worry about volatility when considering stocks? One idea is to keep in mind is a stock's historical correlation to volatility. Stocks that are highly correlated may have been treated as "safe havens" for uncertain times.We ran a screen on stocks trading under $5 for those that are highly positively correlated to volatility, as measured by the VIX index, over the last two months. This means that these stocks have historically tended to move up as volatility spikes.
Lately there’s been quite a lot of volatility in world markets.
The Shanghai Composite Index has tumbled close to 40 percent since hitting a seven-year high in June. The S&P 500 Index dipped into correction territory after a spectacular six-year bull run. And the Chicago Board Options Exchange SPX Volatility Index—popularly known as the VIX—spiked dramatically last month.
By Kapitall:Do you worry that the market will see significant volatility in the near future? One idea is to consider a stock's historical correlation to volatility - stocks that are positively correlated may have been treated as safe havens.