Gold vs. the S&P 500: With Inflation at a 3-Year High, Which Does History Say Wins?

Rising energy costs and the Middle East conflict drove U.S. inflation to a three-year high in May. According to the Bureau of Labor Statistics, prices rose 4.2% over the previous 12 months, accelerating from its 3.8% increase in April. That pressure could force the Federal Reserve to raise its benchmark interest rates to throttle economic growth and tame inflation.However, the S&P 500 is still trading near its all-time highs and looks historically expensive at 32 times earnings. Meanwhile, gold -- the conventional hedge against inflation -- has retreated about 24% from its record high of $5,589 per troy ounce in January.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool