Gold and the S&P 500 have both reached record highs in March, with gold futures up more than 6% and the S&P 500 at an all-time high. Jefferies analysts suggest that gold may outperform the index in the next month.
Despite Federal Reserve easing benefiting both assets, Jefferies analysts found that when gold rallies 5% or more in a month, the S&P 500 tends to have “rockier” performance in the short term, with one-week to one-month performance negative to flat. However, gold tends to perform better than the S&P 500 in the 12 months following such rallies, averaging over 9%.
Why gold may outperform stocks after record highs for both assets
March 11, 2024
Article from MarketWatch by Myra P. Saefong
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