{"id":291679,"date":"2025-10-10T10:13:18","date_gmt":"2025-10-10T10:13:18","guid":{"rendered":"https:\/\/www.europesays.com\/us\/291679\/"},"modified":"2025-10-10T10:13:18","modified_gmt":"2025-10-10T10:13:18","slug":"bullion-isnt-supposed-to-boom-with-stocks-in-a-bull-market","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/291679\/","title":{"rendered":"Bullion isn&#8217;t supposed to boom with stocks in a bull market"},"content":{"rendered":"<p class=\"dream-post-content-paragraph j6zgbu1\"><strong>Happy Friday, investors. <\/strong>Ever since JPMorgan called out the debasement trade last week, it\u2019s drawn eyeballs to the sharp rally for hard assets like gold. As much as investors have capitalized on the boom, there\u2019s a strange pattern unfolding when you measure it against history.<\/p>\n<p class=\"dream-post-content-paragraph j6zgbu1\">Gold is having its best year in decades but it\u2019s happening at the wrong time, according to history.<\/p>\n<p class=\"dream-post-content-paragraph j6zgbu1\">The metal is often seen as a fear gauge, a hedge against risk and panic that fluctuates based on economic confidence. That\u2019s why it tends to alternate strong and weak years with equities. <\/p>\n<p class=\"dream-post-content-paragraph j6zgbu1\"><strong>This year, though<\/strong>, gold is outpacing the S&amp;P 500 by 35% \u2014 one of its widest margins since the financial crisis. <\/p>\n<p class=\"dream-post-content-paragraph j6zgbu1\">Historically, that kind of move has only happened during moments of stress: <\/p>\n<ul translations=\"[object Object]\" homepath=\"https:\/\/www.openingbelldailynews.com\/\" loginpath=\"\/login\" subscribepath=\"\/subscribe\" class=\"_1ao94nj1\">\n<li class=\"_11av8sw0\" translations=\"[object Object]\" homepath=\"https:\/\/www.openingbelldailynews.com\/\" loginpath=\"\/login\" subscribepath=\"\/subscribe\"\/>\n<li class=\"_11av8sw0\" translations=\"[object Object]\" homepath=\"https:\/\/www.openingbelldailynews.com\/\" loginpath=\"\/login\" subscribepath=\"\/subscribe\">\n<p class=\"dream-post-content-paragraph j6zgbu1\">2011 euro-zone debt panic<\/p>\n<\/li>\n<li class=\"_11av8sw0\" translations=\"[object Object]\" homepath=\"https:\/\/www.openingbelldailynews.com\/\" loginpath=\"\/login\" subscribepath=\"\/subscribe\"\/><\/ul>\n<p class=\"dream-post-content-paragraph j6zgbu1\">But right now gold is surging while the S&amp;P 500 enters its third year of a bull run.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2025\/10\/Untitled_design__51_.jpg\" alt=\"\" style=\"width:100%\" class=\"_2fealp2 _2fealp5\"\/><\/p>\n<p class=\"dream-post-content-paragraph j6zgbu1\"><strong>Gold is beating stock<\/strong>s by about 1.5 standard deviations above its long-run average, making this moment a statistical anomaly, according to DataTrek Research. <\/p>\n<p class=\"dream-post-content-paragraph j6zgbu1\">\u201cNot only is gold\u2019s recent performance versus the S&amp;P unusual in terms of magnitude, but it is also coming at the \u2018wrong\u2019 time in an investment cycle,\u201d said DataTrek co-founders Nicholas Colas and Jessica Rabe. <\/p>\n<p class=\"dream-post-content-paragraph j6zgbu1\">\u201cThere is no analog to this price action over the last two decades.\u201d<\/p>\n<p class=\"dream-post-content-paragraph j6zgbu1\">Indeed, the S&amp;P 500 is having a better-than-expected year with a 14.7% return, but gold is up almost 50%.   <\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2025\/10\/Untitled_design__50_.jpg\" alt=\"\" style=\"width:100%\" class=\"_2fealp2 _2fealp5\"\/><\/p>\n<p class=\"dream-post-content-paragraph j6zgbu1\"><strong>During past cycles<\/strong>, gold only climbed when investors sought out safety. <\/p>\n<p class=\"dream-post-content-paragraph j6zgbu1\"><strong>But somehow today<\/strong>, with risk-assets booming and Big Tech ruling the market, gold and stocks are making record highs simultaneously.<\/p>\n<p class=\"dream-post-content-paragraph j6zgbu1\">There are a few reasons for this: <\/p>\n<ul translations=\"[object Object]\" homepath=\"https:\/\/www.openingbelldailynews.com\/\" loginpath=\"\/login\" subscribepath=\"\/subscribe\" class=\"_1ao94nj1\">\n<li class=\"_11av8sw0\" translations=\"[object Object]\" homepath=\"https:\/\/www.openingbelldailynews.com\/\" loginpath=\"\/login\" subscribepath=\"\/subscribe\">\n<p class=\"dream-post-content-paragraph j6zgbu1\">Global central banks have ramped up gold purchases<\/p>\n<\/li>\n<li class=\"_11av8sw0\" translations=\"[object Object]\" homepath=\"https:\/\/www.openingbelldailynews.com\/\" loginpath=\"\/login\" subscribepath=\"\/subscribe\">\n<p class=\"dream-post-content-paragraph j6zgbu1\">Retail investors are piling into gold<\/p>\n<\/li>\n<li class=\"_11av8sw0\" translations=\"[object Object]\" homepath=\"https:\/\/www.openingbelldailynews.com\/\" loginpath=\"\/login\" subscribepath=\"\/subscribe\">\n<p class=\"dream-post-content-paragraph j6zgbu1\">Demand for gold ETFs is booming<\/p>\n<\/li>\n<\/ul>\n<p class=\"dream-post-content-paragraph j6zgbu1\">It seems, then, that the appetite for gold during the equity bull market is a consequence of investors seeking diversification in their optimism. <\/p>\n<p class=\"dream-post-content-paragraph j6zgbu1\">Rather than hedging risk like usual, they want as many winners as possible in their portfolio. <\/p>\n<p class=\"dream-post-content-paragraph j6zgbu1\">That in itself seems to signal an overabundance of confidence in the current outlook.<\/p>\n<p class=\"dream-post-content-paragraph j6zgbu1\">\u201c[G]old is dramatically outperforming at a time when history says it should be languishing,\u201d Colas and Rabe said.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2025\/10\/newplot__99_.png\" alt=\"\" style=\"width:100%;border-style:solid;border-radius:0px 0px 0px 0px;border-color:#E5E7EB;box-sizing:border-box;border-width:0px 0px 0px 0px\" class=\"_2fealp2 _2fealp5\"\/><\/p>\n<p class=\"dream-post-content-paragraph j6zgbu1\">\ud83d\udcc8<strong> Nvidia hit another record high<\/strong> after the US government approved exports of the company\u2019s products to the UAE. It\u2019s the first time Nvidia will be allowed to ship its AI chips to the country since President Trump started his new term. (<a href=\"https:\/\/finance.yahoo.com\/news\/nvidia-stock-climbs-to-record-amid-reported-uae-export-approval-price-target-raise-this-is-not-a-bubble-154018663.html\" target=\"_blank\" rel=\"noopener\" class=\"_3k8pkd0\">Yahoo Finance<\/a>) <\/p>\n<p class=\"dream-post-content-paragraph j6zgbu1\">\ud83d\udcb5 <strong>The US is moving forward with its rescue of Argentina. <\/strong>Treasury Secretary Scott Bessent said America has purchased Argentine pesos, and it has finalized plans for a $20 billion currency swap. (<a href=\"https:\/\/www.barrons.com\/articles\/u-s-argentina-financial-rescue-bessent-a7d60a5b?st=khvxUx&amp;reflink=desktopwebshare_permalink\" target=\"_blank\" rel=\"noopener\" class=\"_3k8pkd0\">Barron\u2019s<\/a>)<\/p>\n<p class=\"dream-post-content-paragraph j6zgbu1\">\ud83d\udfe2<strong> It\u2019s about to get easier for companies to go public in a shutdown.<\/strong> Wall Street\u2019s top regulator eased the way for businesses to proceed with IPO offerings during periods when Congress hasn\u2019t approved funding for government operations. (<a href=\"https:\/\/finance.yahoo.com\/news\/wall-street-regulator-eases-ipo-215150792.html\" target=\"_blank\" rel=\"noopener\" class=\"_3k8pkd0\">Reuters<\/a>)<\/p>\n<ul translations=\"[object Object]\" homepath=\"https:\/\/www.openingbelldailynews.com\/\" loginpath=\"\/login\" subscribepath=\"\/subscribe\" class=\"_1ao94nj1\">\n<li class=\"_11av8sw0\" translations=\"[object Object]\" homepath=\"https:\/\/www.openingbelldailynews.com\/\" loginpath=\"\/login\" subscribepath=\"\/subscribe\">\n<p class=\"dream-post-content-paragraph j6zgbu1\" style=\"--text-align:left\">Former Fed Governor Larry Lindsey withdrew his name for Fed Chair (<a href=\"https:\/\/www.cnbc.com\/2025\/10\/09\/former-fed-governor-larry-lindsey-withdraws-name-for-fed-chair.html\" target=\"_blank\" rel=\"noopener\" class=\"_3k8pkd0\">CNBC<\/a>)<\/p>\n<\/li>\n<li class=\"_11av8sw0\" translations=\"[object Object]\" homepath=\"https:\/\/www.openingbelldailynews.com\/\" loginpath=\"\/login\" subscribepath=\"\/subscribe\">\n<p class=\"dream-post-content-paragraph j6zgbu1\" style=\"--text-align:left\">Delta reported strong Q3 earnings and sees \u201csignificant improvement\u201d for revenue (<a href=\"https:\/\/finance.yahoo.com\/news\/delta-reports-strong-q3-earnings-ceo-sees-significant-improvement-in-revenue-outlook-103521470.html\" target=\"_blank\" rel=\"noopener\" class=\"_3k8pkd0\">Yahoo Finance<\/a>)<\/p>\n<\/li>\n<li class=\"_11av8sw0\" translations=\"[object Object]\" homepath=\"https:\/\/www.openingbelldailynews.com\/\" loginpath=\"\/login\" subscribepath=\"\/subscribe\">\n<p class=\"dream-post-content-paragraph j6zgbu1\" style=\"--text-align:left\">President Trump suggested tossing Spain out of NATO for under-spending on defense (<a href=\"https:\/\/finance.yahoo.com\/news\/trump-suggests-tossing-spain-nato-213536043.html\" target=\"_blank\" rel=\"noopener\" class=\"_3k8pkd0\">Bloomberg<\/a>)<\/p>\n<\/li>\n<li class=\"_11av8sw0\" translations=\"[object Object]\" homepath=\"https:\/\/www.openingbelldailynews.com\/\" loginpath=\"\/login\" subscribepath=\"\/subscribe\">\n<p class=\"dream-post-content-paragraph j6zgbu1\" style=\"--text-align:left\">Intel\u2019s next-gen chip will enter high volume production in 2026 (<a href=\"https:\/\/www.barrons.com\/articles\/intel-stock-price-panther-lake-chip-news-65d96fe2?st=85eXFB&amp;reflink=desktopwebshare_permalink\" target=\"_blank\" rel=\"noopener\" class=\"_3k8pkd0\">Barron\u2019s<\/a>)<\/p>\n<\/li>\n<li class=\"_11av8sw0\" translations=\"[object Object]\" homepath=\"https:\/\/www.openingbelldailynews.com\/\" loginpath=\"\/login\" subscribepath=\"\/subscribe\">\n<p class=\"dream-post-content-paragraph j6zgbu1\" style=\"--text-align:left\">Levi Strauss stock fell 7% after raising prices and reporting solid profits (<a href=\"https:\/\/www.cnbc.com\/2025\/10\/09\/levi-strauss-levi-q3-2025-earnings.html\" target=\"_blank\" rel=\"noopener\" class=\"_3k8pkd0\">CNBC<\/a>)<\/p>\n<\/li>\n<li class=\"_11av8sw0\" translations=\"[object Object]\" homepath=\"https:\/\/www.openingbelldailynews.com\/\" loginpath=\"\/login\" subscribepath=\"\/subscribe\">\n<p class=\"dream-post-content-paragraph j6zgbu1\" style=\"--text-align:left\">New York sued Meta, TikTok and other platforms again over social media (<a href=\"https:\/\/www.barrons.com\/articles\/new-york-lawsuit-social-media-addiction-3db32e40?st=GBZqKb&amp;reflink=desktopwebshare_permalink\" target=\"_blank\" rel=\"noopener\" class=\"_3k8pkd0\">Barron\u2019s<\/a>)<\/p>\n<\/li>\n<li class=\"_11av8sw0\" translations=\"[object Object]\" homepath=\"https:\/\/www.openingbelldailynews.com\/\" loginpath=\"\/login\" subscribepath=\"\/subscribe\">\n<p class=\"dream-post-content-paragraph j6zgbu1\" style=\"--text-align:left\">President Trump brokered a deal for a ceasefire in Gaza and for Hamas to release its hostages (<a href=\"https:\/\/www.wsj.com\/world\/middle-east\/israel-hamas-gaza-hostage-ceasefire-deal-815d533f?st=sYBLwp&amp;reflink=desktopwebshare_permalink\" target=\"_blank\" rel=\"noopener\" class=\"_3k8pkd0\">WSJ<\/a>)<\/p>\n<\/li>\n<li class=\"_11av8sw0\" translations=\"[object Object]\" homepath=\"https:\/\/www.openingbelldailynews.com\/\" loginpath=\"\/login\" subscribepath=\"\/subscribe\">\n<p class=\"dream-post-content-paragraph j6zgbu1\" style=\"--text-align:left\">The Senate failed to pass a vote to end the government shutdown for a 7th time (<a href=\"https:\/\/www.cnbc.com\/2025\/10\/09\/government-shutdown-senate-vote-bills.html\" target=\"_blank\" rel=\"noopener\" class=\"_3k8pkd0\">CNBC<\/a>)<\/p>\n<\/li>\n<\/ul>\n<p class=\"dream-post-content-paragraph j6zgbu1\" style=\"--text-align:left\">I joined the <a href=\"https:\/\/tv.nyse.com\/nyse-tv-highlights\/season:3\/videos\/s-p-500-hits-fresh-record-amid-second-week-of-government-shutdown\" target=\"_blank\" rel=\"noopener\" class=\"_3k8pkd0\">New York Stock Exchange<\/a> to unpack why asset prices are going much higher and why investors do not care about a government shutdown. <\/p>\n<p><a target=\"_blank\" href=\"https:\/\/tv.nyse.com\/nyse-tv-highlights\/season:3\/videos\/s-p-500-hits-fresh-record-amid-second-week-of-government-shutdown\" class=\"text-decoration-none\" rel=\"noopener\"><img decoding=\"async\" src=\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2025\/10\/Screenshot_2025-10-09_at_1.51.07_PM.png\" alt=\"\" style=\"width:100%\" class=\"_2fealp2 _2fealp5\"\/><\/a><\/p>\n<p class=\"dream-post-content-paragraph j6zgbu1\">\ud83d\udcf0 I\u2019m Phil Rosen, co-founder of Opening Bell Daily. I\u2019ve published books, lived on three continents, and won awards for my journalism, which has appeared in Business Insider, Fortune, Yahoo Finance, Bloomberg and Inc. Magazine. <\/p>\n<p class=\"dream-post-content-paragraph j6zgbu1\">I write our flagship newsletter to prepare you for each trading day \u2014 unpacking markets, economic data and Wall Street with analysis you won\u2019t find anywhere else. <\/p>\n","protected":false},"excerpt":{"rendered":"Happy Friday, investors. Ever since JPMorgan called out the debasement trade last week, it\u2019s drawn eyeballs to the&hellip;\n","protected":false},"author":3,"featured_media":291680,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[64,525,4313,135,50,67,132,68],"class_list":{"0":"post-291679","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-business","9":"tag-finance","10":"tag-investing","11":"tag-markets","12":"tag-news","13":"tag-united-states","14":"tag-unitedstates","15":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115349344129896038","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/291679","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=291679"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/291679\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/291680"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=291679"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=291679"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=291679"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}