S&P 500 at highs in dollars, but down more than 20% in gold by 2025
A week marked by new all-time highs in stock markets, despite the U.S. government shutdown. However, the S&P 500 is expected to lose more than 20% in 2025 when priced in gold.
Stock market sentiment is currently very positive, supported primarily by news about artificial intelligence and the momentum of related technology companies. It was a week of all-time highs for most stock indices, from the US to the UK and the German DAX.
The indices are nominal, and the high liquidity still visible in the markets results not only from the expansion of central bank balance sheets, especially the US Federal Reserve, but also from the appreciation of stock indices. In a virtuous cycle, the wealth effect generated ends up spreading, driving, supporting, and ensuring further investment in AI, but whether it will yield a return is more difficult to determine.
Content reserved for subscribers. Read the full version here . October 3rd edition of Jornal Económico .
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