If recent U.S. market gains are starting to make you feel a little queasy, perhaps it’s time to consider gold.
The precious metal and its constellation of related companies have been showing consistent strength between the winter solstice and the middle of January, based on an informal analysis of FactSet data.
Gold itself has averaged a gain of 4.1% based on available data for the past five years. That's nearly two full percentage points better than its next best Zodiac sign, Leo, when it's gained 2.35%.
Over the last 15 years, the SPDR Gold Trust (GLD) - Get Report has had its highest average gains during the period from the winter solstice to mid-January as well. The trust has averaged a gain of 3.48% during the period coinciding with Capricorn. That’s almost double its performance during any other Zodiac period. The next best for the gold trust is Aquarius, when it’s advanced an average of 1.85% over the past 15 years.
The gold trust has only fallen in two of the last 15 Capricorn periods -- one ending in 2005 and the other in 2011. The performance during the 2018-19 Capricorn period was a relatively modest 1.45% gain. But the prior two periods saw gains of 6.42% and 5.08%.
Gold and the gold trust’s strength are matched by several mining stocks. AngloGold Ashanti ADRs (AU) - Get Report have averaged a gain of 6.78% during Capricorn, over the past 15 years. Agnico Eagle Mines (AEM) - Get Report has averaged 6.72%. Kinross Gold (KGC) - Get Report has averaged 4.68%. And Barrick Gold (GOLD) - Get Report has averaged 4.51%,
In each case, the performance during Capricorn is the best of any Zodiac signs for the stocks.
Of course, past performance is no guarantee of future returns. And making investment decisions tied to the Zodiac is, shall we say, not in conformity with modern portfolio theory.
But hey, if you’re already looking to gold as an investment, you’re probably open to outside-the-box thinking, right?
So, if you must buy gold, now’s basically the best time to do it, at least based on these historical returns.