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

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