A rare divergence is taking shape across financial markets, as gold and U.S. equities chart dramatically different paths under the current presidential term. According to Michael Hartnett, chief investment strategist at Bank of America, gold has posted its most robust performance for a U.S. president’s first term since Gerald Ford’s tenure in the 1970s.
Meanwhile, U.S. equity markets are enduring a rough patch, marking the weakest showing for the beginning of a presidential term since the Ford administration. This contrasting trajectory reflects heightened investor concerns over inflation, monetary policy uncertainty, and geopolitical tensions, which have driven demand for safe-haven assets like gold.
Gold’s continued rally underscores its appeal as a hedge against economic uncertainty and currency devaluation. In contrast, equities have been pressured by rising interest rates and concerns over the sustainability of corporate earnings growth.
According to Hartnett, this market dynamic may signal broader shifts in investor sentiment and asset allocation strategies, potentially shaping the financial landscape in the months ahead.
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