Direxion Daily Gold Miners Be (DUST)

[Sgreg]

Overall, that is correct. The overall market, I just say S&P stopped the bear market and crash in March 2009 and then went on a major bull run.

If you take the GDX chart and the S&P chart back then you will see they are basically identical. The only difference between the two is that the GDX chart is "ahead" of the S&P chart by 3/4 months are so on the decline and recovery. All in all it deosn't matter too much because the actual overall bear market started Oct 2007 and as time moved ahead turned into a crash and it did not end until March 2009. The crash in miners was fully within this window of the overall bear market and crash.

The economy was still a mess as you say but the overall market began its new bull market in March 2009 even without the economy turning yet. From March 2009 until May of last year the overall market was in a huge bull run.

So yes miners did great from 2009 until 2012 but the overall market did great as well. Miners did terrible in 2008 and that coincided with the overall bear market and crash from Oct 2007-Mar 2009.

Miners are not good hedges against the stock market. They are part of the stock market. Gold is the hedge not miners.