Ask The Compound Why Is Gold Outperforming the Stock Market?
Oct 8, 2025
Join Jurrien Timmer, Director of Global Macro at Fidelity Investments, as he dives into the intriguing world of market dynamics. He explains why top tech firms continue to thrive and how the labor market's changes are surprisingly overlooked by stocks. Timmer reveals why international stocks are gaining traction, while directly addressing the recent rally in gold despite the AI surge. He also discusses how to identify asset bubbles, contrasting today’s market with past tech manias. Tune in for a blend of insightful analysis and market trends!
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Concentration May Be The New Normal
- Market concentration with MAG7 at ~36% can persist for decades and may be a new normal rather than a temporary spike.
- Big tech's scale, moats, and acquisition of smaller rivals reinforce long-term dominance unless regulation intervenes.
Labor Market Is Normalizing, Not Collapsing
- The labor market has largely normalized from the COVID outlier and is now roughly in balance between openings and seekers.
- The market focuses on accelerating earnings, CapEx, and Fed easing, so softening jobs data hasn't yet derailed stocks.
Travel Reopening Exposed Labor Shortages
- Jurrien recounts flying JetBlue during reopening and noticing severe staff shortages in travel services.
- The travel boom required rehiring and retraining, exemplifying post‑COVID labor frictions.