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

MeNews · 2026-04-11T16:00:19+00:00

Bloomberg senior commodity strategist Mike McGlone stated that history shows that after a rapid rise in gold, U.S. stocks often decline accordingly. Currently, gold prices are above the long-term average; if they revert to the mean, the S&P 500 could face a roughly 25% correction, similar to the situation in 2008.

MeNews

2026-04-11 16:00:19

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ME News Report, April 11 (UTC+8), Bloomberg senior commodities strategist Mike McGlone posted on X platform that historical experience shows that when gold peaks after a rapid rise, U.S. stocks often decline accordingly. His analysis indicates that the current gold price has risen to about 1.9 times the 20-quarter moving average, higher than the peak level of approximately 1.7 times in 2008. If gold reverts to its long-term average, the S&P 500 could face a roughly 25% correction; similar situations in 2008 triggered about a 60% decline, and driven by factors such as the global energy crisis, both gold and stocks are at high levels. Even a mean reversion at this stage could exert downward pressure on the U.S. stock market. (Source: PANews)

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