Gold: What gold tell us about the stocks

If history is any guide, gold's big quarter could be a bullish signal for stocks.
Using Kensho, a tool designed to quantify historical market events, we looked at quarters where gold has jumped 10 percent or more since 1990. There have been nine non-overlapping occasions.

But where it gets interesting is what's happened next to stocks.

Six months later, the major U.S. benchmarks have reliably climbed higher. The gain for equities may suggest that after a big quarter for gold — traditionally seen as a safety place — investors are ready to put some risk back on the table.

Indeed, the relatively riskier indexes, the Nasdaq Composite and small cap Russell 2000, have outperformed the S&P500 and blue chip Dow Industrials.

And it's not just U.S. stocks that typically gain after a gold rush. In Europe, Germany's DAX index has been a big winner, gaining 11.5 percent on average, while in Asia, Hong Kong's Hang Seng has returned more than 13 percent on average.

Gold may be the standout so far this year. But history suggests it may yet be equities' time to shine.

Read more:

• Oil fundamental and inertia can push prices to new highs
• Goldman Sachs: “Gold is a better hedge than oil in current market conditions”
• Golden years for Gold
• The end-of-year gold rally continues at full speed
• Gold goes over $ 1,500, big players with estimates for the next year