Gold Has Been One of the Best Stock Market Hedges So Far in 2014

Although it’s not a traditional stock market hedge, the facts don’t lie:  Gold has been an effective equity hedge so far in 2014.  First, gold is up 8.53% versus 1.96% for the S&P 500.  Second, during times of market turmoil, gold has traded well.  During the three drops in the stock market this year ( the Emerging Market Turmoil of late Jan/early Feb, the Ukraine Turmoil of early March, and the “Momentum” stock led sell off in early April)  gold has rallied, helping to protect portfolios against losses.