What is this logic based on? The rebalancing of gold and Equity.
yndesai
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@bountyhunter21, Usually one must keep their investment in 2~3 different asset which performs differently. So here if gold is down equity is up you move part of equity to gold. Same in case if gold is up and equity is down you move some of gold investment to equity. This help us buy each asset at reasonable price and force us to book partial profit when they are overvalued.
bountyhunter21
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@yndesai,
Yes true. But why now. What has changed now that it needs rebalancing.
yndesai
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@bountyhunter21, When both have moved in opposite direction creating gap of 30%+ you have good trigger.. Its not that you do it today you can plan in 1~2 months.