Barclays chief technical guy is on CNBC pointing out some interesting seasonal trends.
As most people know, September/October tends to be the most volatile time in equity markets and that is born-out by the data as the VIX (volatility on the S&P 500) tends to rise during that period…Remember September 2008 when it rose to 80%? If stocks are going to take a slide, they tend do it this time of year…
Gold also tends to out-perform in the latter months of the year after stagnating in the spring. This year’s price action is in-sync with that longer-term trend.
Sell stocks, buy gold and make sure to lay in some gas masks and canned goods!
Form a serious perspective, taking some profits on commodity currencies might be a prudent way to play a historically negative period for risky assets…
