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 senior commodities strategist Mike McGlone posted on the X platform, saying that historical experience shows that when gold tops after a rapid rise, U.S. stocks often fall as well. His analysis pointed out that the current gold price has risen to about 1.9 times the 20-quarter moving average, which is higher than the peak level of approximately 1.7 times in 2008. If gold returns to its long-term average, the S&P 500 may face a pullback of around 25%; while similar circumstances in 2008 led to a decline of about 60%, and driven by factors such as the global energy crisis, both gold and the stock market are currently at elevated levels. At this stage, even if only mean reversion occurs, it could still put downward pressure on the U.S. stock market. (Source: PANews)