Public trading strategy
Inflation stays hot and rate hikes loom — protect your portfolio with gold
Thesis
When inflation rises and the Federal Reserve has to raise interest rates to fight it, it creates uncertainty in both the stock and bond markets. Gold historically thrives in this type of environment because it is viewed as a safe place to park money when the purchasing power of the dollar drops. Citadel and the Treasury market are both flashing warning signs about inflation, making gold an ideal hedge right now.
Strategy approach
Build a rule-based strategy that enters long GLD on the daily timeframe when the 10-day EMA crosses above the 50-day EMA and the MACD histogram is positive. Hold with a 4% trailing stop.