Bloomberg Strategist: Gold's Top Signal Reappears, Potentially Triggering a "Mean Reversion" Decline in U.S. Stocks

ME News Report: On April 11 (UTC+8), Bloomberg’s senior commodities strategist Mike McGlone said on the X platform that historical experience shows that when gold peaks after a rapid rise, U.S. stocks often fall as well. His analysis indicates that the current gold price has risen to about 1.9 times the 20-quarter moving average, higher than the peak level of about 1.7 times in 2008. If gold returns to its long-term average, the S&P 500 may face roughly a 25% pullback; in 2008, a similar scenario led to declines of about 60%. With factors such as the global energy crisis driving both gold and the stock market to elevated levels, even a mean reversion in the current stage could place downside pressure on the U.S. stock market. (Source: PANews)