Merryn Talks Money The Great Rotation is Here, What's Next For Gold, and UK Borrowing
Apr 23, 2025
Explore the recent shift in investment strategies as the 'great rotation' sees cash flowing from high-valued stocks to more stable options. The discussion highlights soaring gold prices as a safe haven amid economic uncertainty and potential recession. Delve into the intriguing relationship between political influence and central bank independence, revealing how political pressures can overshadow monetary policy. A comparison between gold and Bitcoin adds an extra layer to the conversation on asset stability in today's volatile market.
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Market Volatility vs Actual Gains
- Despite recent market volatility, the S&P 500 was actually about 8% up over the last 12 months.
- This shows much of the recent market fuss is exaggerated for long-term ordinary investors.
Trump Catalyzed Market Rotation
- Donald Trump has accelerated a shift away from US stocks to other markets.
- This great rotation moves from very expensive stocks to cheaper ones.
Gold Surge and Possible Correction
- Gold's price surged 40% in the last year, acting as ultimate portfolio insurance.
- Yet its rapid rise suggests a possible near-term correction may occur.