Episode summary
Stock Buyers Emerge as Gold Selloff Cools Down
Bloomberg Surveillance
· · 6 min · Guests: Talley Leger, Darrell Cronk, Brian Jacobsen, Robert Gottlieb, Jia Zheng
Summary
The guest argued that the recent pullback in gold and silver is a positioning shakeout rather than a change in the broader market story, and said gold should keep losing appeal if the economy is heading into a boom. He said investors had piled into precious metals for safety, but that stronger growth, easier financial conditions and a firmer dollar framework make a large gold allocation less compelling now.
On stocks, the guest said advisers were prepared for turbulence and that the selloff does not alter a constructive 2026 outlook built on seven headwinds and ten tailwinds. The most important tailwind, in his view, is earnings growth, with current reporting season running “so far so good.” He also pointed to supportive fiscal and monetary policy, improving corporate fundamentals and what he called a real reacceleration in the economy.
He was similarly constructive on fixed income, expecting the 10-year Treasury yield to soften further once the recent oil-driven worries fade, with bond markets delivering positive but modest returns. On Bitcoin, he said it can still work as an alternative store of value, but only for believers willing to “hold on for dear life.”
Key takeaways
- The guest said gold’s drawdown looks like a positioning unwind, and he expects it to lose luster if the economy continues to strengthen.
- He said the biggest 2026 tailwind for stocks is earnings growth, with reporting season “so far so good.”
- The guest expects the 10-year Treasury yield to continue softening and sees bond returns as positive but likely in the low single digits.
- He said Bitcoin can still work as an alternative store of value, but only if investors can stomach volatility and buy dips.
- The guest argued that supportive fiscal and monetary policy, plus improving corporate fundamentals, are driving a real economic reacceleration.
Notable quotes
“we do think that the ten tailwinds and those very powerful forces will re-engage and ultimately take the stock market to a higher level by the end of the year”
“I think it makes less and less sense to have a large holding in gold”
“Markets are doing the Fed's job for it until we get a new master at the helm there”
“So if we're right about our previous discussion, dollar weakness and Bitcoin being an alternative store of value, I think for the real die hard believers there, this could be one of those by the dips moments”
How the episode opens
So we did prepare our advisers and their clients for the possibility of some turbulence. This is something that happens and we laid it out in the seven headwinds in our 2026 outlook. So this is not completely unsurprising to us.
But ultimately, we do think that the ten tailwinds and those very powerful forces will re-engage and ultimately take the stock market to a higher level by the end of the year. So to your mind, what are those tailwinds for 2026? So the biggest one I'd have to lead with that, Alexis, would be good old fashioned earnings growth.
And we're still working through the current reporting period, but it looks so far so good. So talk to us about that because just over the weekend, the volatility we've seen in gold, I mean, a lot of folks are saying not surprised because we've had such a crazy run up in gold, silver, other precious metals as well, is that when you kind of chalk it up to you, I'm sure probably got some crazy phone calls from advisors and clients here saying, Oh my God, I just piled into the gold or silver ETF last week and now I'm getting crushed here. Right.
This is what happens. So we have offered gold in our Liquid alternatives strategy at WCG, and we're pleased to show that performance, but we also change our tune as well. And if consumer sentiment is a vote on job security, I think it stands to reason that bad feelings and low, low morale and high gold prices kind of go go hand in hand.
But the shift here, the change in thinking is that gold should continue to lose its luster amidst an economic boom. If we're right. And how much is the dollar have to do with all of that?
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- gold selloff
- rotation to cyclicals
- fed nomination expectations
- dollar and bond yields
- china-driven commodity positioning
Companies and tickers mentioned
- WFC
- PLTR
- JPM
- Wealth Consulting Group
- Wells Fargo
- Annex Wealth Management
- Palantir Technologies
- JPMorgan Chase & Co.
- Shanghai Soochow Jiuying Investment Management Co.
Watch the episode
Watch “Stock Buyers Emerge as Gold Selloff Cools Down” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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