Cause Effect: Gold and P Index

cause effect: It's also not a hedge against stock market crashes, as we discovered in March, according to The Japan Times. Gold is a hedge on government authorities making poor economic choices. Many erroneously believe gold is some sort of inflation hedge, because of our experience in the 1970s. Inflation is usually the result of those poor decisions, but people confuse cause and effect here. Gold has significantly outperformed stocks this century, gaining about 555% versus 79% for the MSCI All-Country World Index of stocks and 146% for the S&P 500 Index. Gold is a hedge on policy makers screwing up, and there has been a lot of screwing up in the last 20 years. (news.financializer.com). As reported in the news.