Strategist warns gold beating stocks and crypto is ‘disconcerting’
Bloomberg Intelligence senior commodity strategist Mike McGlone has warned that gold’s persistent outperformance over equities and cryptocurrencies is flashing a warning sign for risk assets. He noted that for nearly eight years, the S&P 500 has failed to gain ground against gold, reversing a long-term trend where stocks consistently outpaced the metal. In an X post on August 23, McGlone said this divergence reflects fading confidence in human ingenuity and corporate earnings to deliver superior returns compared to hard assets. The concern extends to Bitcoin, often dubbed “digital gold,” which has also stalled against the metal. Even with the VIX at fresh lows, the cryptocurrency has struggled to sustain momentum. Gold Beating Stocks, Cryptos Is Disconcerting – It may be a distressing sign for risk assets that the S&P 500 and cryptocurrencies have flatlined vs. gold for nearly eight years. Stocks failing to beat the rock since 2017 counters lo...