Gold (and central banks) know that neither Congress nor the White House has any plan in place to cut off relentless peacetime, "non-recession" deficit spending. Source: CBO pic.twitter.com/Mg8H8x8yDf
— David Sommers (@dgsommersmkts) May 5, 2025
Heading into 2025, $GLD was underperforming the S&P 500 since 2020 by ~10%.
However, as uncertainty has risen, $GLD is now up +109% since 2020 compared to +74% in the S&P 500.
But, why are gold prices surging even as the market recovers?
Uncertainty remains the answer. pic.twitter.com/qrVtHgR2wP
— The Kobeissi Letter (@KobeissiLetter) May 5, 2025
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IV. What Would It Take to “Remove the Credit Risk”?
1. Fiscal Consolidation with Real Enforcement Teeth:
•Balanced budget amendment or yield-targeting Treasury auction caps.
•Entitlement reform Social Security/Medicare recalibrations or “means testing.”2. Dollar…
— EndGame Macro (@onechancefreedm) May 5, 2025