Gold's long-term correlation with the S&P 500 has just reached an extremely high level, only seen in...August 2007.
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The consensus among major investment banks surveyed by the FT sees the S&P 500 soaring past 7,500 by the end of 2026—a roughly 10% increase from current levels. What's fueling the bull market? 📌 The Triumvirate: Analysts at Morgan Stanley point to "easy fiscal, monetary and regulatory policy," including the estimated $129bn in corporate tax cuts from the Trump administration. 📌AI Tailwinds: The market believes it has shrugged off recent jitters over Big Tech valuations. Companies like Nvidia, the world's first $5T company, continue to power the index. 📌Rate Cuts: Investors are pricing in 3-4 quarter-point Fed rate cuts by the end of next year, boosting sentiment. The Great Debate: 🐂 Most Bullish (Deutsche Bank): Sees the S&P hitting a massive 8,000, betting on corporate earnings broadening out beyond tech. 🐻 Most Cautious (Bank of America): Forecasts just 7,100, warning that AI spending and data center build-out have yet to appear in better earnings. "For now investors are buying the dream." Note however that while such gains would mark the seventh year of double-digit gains in the past eight, they would represent a slowdown from the 16.6 per cent rise so far in 2025 and the average over the past decade - see chart below https://lnkd.in/eKYt6PK7 Source: FT
Source: The Market Ear, LSEG Workspace
As shown below, bitcoin has a high correlation with unprofitable tech stocks and the Nasdaq.

