It looks like gold stocks should have very little fear of rising interest rate cycles. China may have just pulled a George Soros overnight.
Regards - VHF
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Gold stock performance in rate hike cycles
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Financial Post
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Posted: March 09, 2010, 8:30 AM by Jonathan Ratner
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With the market anticipating rate hikes from the Fed beginning late in 2010 or early in 2011, investors should be keen to know what gold stocks do before and after such tightening cycles.
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On average, gold equities outperform the broader S&P/TSX composite index in the 12 months prior to the hike and lag for roughly nine months afterwards, according to analysis of the last nine cycles from RBC Capital Markets. Then they rebound and eventually peak around the 18-month mark,
