I was interested to see what the correlation was between different assets and asset classes during the period from when gold topped 2011, to when it bottomed 2015. I just had to include the Yen (USD/JPY) since more and more people are noticing its seemingly strong relationship with gold, silver and the S&P500 index.
Anyway, here were the results:
I ran correlations over two other periods as well (2010-2017 & 2015-today), which gave similar results overall. However, JPY and it’s correlation with TLT as well as SPY changed dramatically. I will be putting up additional charts soon.
Some notes regarding the correlations
- JPY seems to be the linchpin for the precious metals as well as the SPY (although correlation does not guarantee causation).
- Gold (paper) was the most sensitive asset class in regards to changes in real yields.
- Gold, silver and miners was the anti trade of S&P500 (exactly what the “people up stairs” would want).
- This is not a functioning free market anymore. Especially JPY’s correlation data is beyond ridiculous.