Gold Outperforms Technology Year-To-Date

The holiday-shortened week marked a significant change in asset performance with gold outperforming technology on a year-to-date basis. This impacts diversified portfolios.

As of the close of last Thursday, YTD return for GLD is at 11.85% versus 10.29% for QQQ total return. This week QQQ lost 1.2% while GLD rose 2.6% taking the lead from the technology ETF.

As it may be seen from the above chart, the reversal in the QQQ/GLD spread with a current value of -156 basis points is significant considering that only a month ago it was at +670 basis points.

This significant reversal impact returns of diversified portfolios. If this trend continues, portfolios that have not invested in gold and are over-weighted in technology will underperform. This may cause a stampede in the next few week and we may see higher gold prices with portfolio managers adjusting allocations.

If you found this article interesting, I invite you follow this blog via any of the methods below.

Subscribe via RSS or Email, or follow us on Twitter

If you have any questions or comments, happy to connect on Twitter: @mikeharrisNY

Charting and backtesting program: Amibroker

Disclaimer

Technical and quantitative analysis of Dow-30 stocks and 30 popular ETFs is included in our Weekly Premium Report. Market signals for longer-term traders are offered by our premium Market Signals service. Mean-reversion signals for short-term SPY traders are provided in our Mean Reversion report.

Copyright Notice

This entry was posted in Technical Analysis and tagged , , , . Bookmark the permalink.

Leave a Reply