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

ME News Report, April 11 (UTC+8), Bloomberg senior commodities strategist Mike McGlone posted on the X platform. He said that historical experience shows that when gold reaches its peak after a rapid rise, U.S. stocks often fall afterward. 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 about a 25% pullback; while in 2008, similar circumstances triggered declines of about 60%, and with both gold and the stock market at elevated levels driven by factors such as the global energy crisis, even if it is only mean reversion at this stage, it could still put downward pressure on the U.S. stock market. (Source: PANews)