Interesting post from Crossing Wall Street

I was playing around with some data and I came with an interesting stat: All of the stock market’s gain since 1970 has come when the price of gold is below $455.

OK, now let me explain a little. I took two monthly files; one with the closing price of gold from 1970 though this past May. The other with the dividend reinvested index for the S&P 500 over the same time period.

I then looked at how well the S&P did based on the closing price of gold for the previous month. The results show that the index was net flat whenever gold closed the previous month higher than $455.50.

Not sure about cause and effect but a fascinating piece of information nonetheless.

I wonder what would happen to the stock market if gold were to go to $5,000?