Market Watch - Gold is Crushing the S&P 500: What That Says About Recession Fears And the Stock Market
Article by Myra P. Saefong in Market Watch
A ratio of the S&P 500 index in terms of gold has dropped to its lowest level since the pandemic, highlighting a preference for safe-haven assets among investors and providing a warning sign for the U.S., as well as the global economy, according to a strategist at State Street Global Advisors.
“The sharp turn lower in the S&P 500/gold ratio in March is itself not a recession indicator,” Aakash Doshi, global head of gold strategy at State Street Global Advisors, told MarketWatch. It does, however, “reflect increased investor demand for safe-haven assets such as gold, and a potential reassessment of U.S. growth exceptionalism and corporate earnings optimism.”
In a recent note, he pointed out that in March, the mean ratio between the S&P 500 and gold dropped to around 1.9 times. That’s how many ......