Global markets may be due for a reality check after this year’s relentless rally, as Goldman Sachs and Morgan Stanley on Tuesday cautioned investors to brace for a drawdown over the next two years. , hitting record highs this year, driven by AI-linked gains and expectations of rate cuts. Over the past month, key U.S. indexes have scaled new peaks, Japan’s Nikkei 225 and South Korea’s Kospi have hit fresh highs, while China’s Shanghai Composite has notched its strongest level in a decade on easing U.S-China tensions and a softer dollar. “It’s likely there’ll be a 10 to 20% drawdown in equity markets sometime in the next 12 to 24 months,” said Goldman Sachs CEO David Solomon at the Global Financial Leaders’ Investment Summit in Hong Kong. “Things run, and then they pull back so people can reassess.” However, Solomon noted that such reversals were a normal feature of long-term bull markets, noting that the investment bank’s standing advice to clients remains to stay invested and review portfolio allocation, not attempt to time markets. “A 10 to 15% drawdown happens often, even through positive market cycles,” he said. “It’s not something that changes your fundamental, your structural belief as to how you want to allocate capital.” Morgan Stanley CEO Ted Pick, speaking at the same panel, said investors should welcome periodic pullbacks, calling them healthy developments rather than signs of crisis. “We should also welcome the possibility that there would be drawdowns, 10 to 15% drawdowns that are not driven by some sort of macro cliff effect,” he said.

Kitco News) - The gold market continues to see extreme volatility, with prices unable to hold initial support at $4,000 an ounce. However, one research firm says that gold’s rally is far from over and expects prices to reach $5,000 by next year. In its annual Precious Metals Investment Focus report, analysts at Metals Focus said that ongoing economic uncertainty remains the biggest factor supporting prices through the new year. “In line with developments throughout 2025, ongoing uncertainty surrounding U.S. trade policy and its impact on the global economy is expected to remain a key driver of sentiment towards ,” the analysts said. At the same time, the analysts also expect investment demand among retail investors to remain strong, as further easing by the Federal Reserve in an elevated inflationary environment is expected to lower the precious metal’s opportunity cost as a non-yielding asset. “Trade tensions, inflation risks, and fragile confidence should sustain safe-haven demand, while fiscal strains and doubts over the Fed’s independence curb the dollar’s appeal. Even if interest rate cuts are less aggressive than markets expect, lower real yields, geopolitical tension, and ongoing official-sector buying should drive fresh record price highs,” the analysts said in the report. The UK-based research firm said it expects prices to average around $4,560 an ounce next year, up 33% from the average year-to-date price. “Such a bullish outlook reflects our view that, despite rising investment inflows, current investor allocations to gold are still significantly lower than levels seen following the 2008 financial crisis. This suggests considerable scope for further inflows, particularly among investors with a medium- to long-term horizon,” the analysts said.

Everything should feel fine in the economy. Gross domestic product was up a healthy and unemployment has stayed at a steady 4.3%. So why does it seem so tough? At Novara Gold, we believe that there is a tipping point coming. Inflation has remained above the 2% Fed target, the labor market is showing signs of softening, and the dollar continues to lose value. The stock market has not been driven by fundamentals, and the PE ratios are out of control with AI based stocks. We believe that this market has been driven by hype and not factual data. This is starting to look like the DOT COM bubble all over again. It is better to prepare and be proactive in protecting a portion of your wealth. As long as your money stays invested in the sock market it is at risk at all times. Now is the time to protect by taking advantage of this run up in stocks and lock in some of those profits. The market can give, but as we have seen before, it can take away abruptly.

"The U.S. could take undervalued gold on its books, reprice it, and convert into Bitcoin," Lummis said. "This would allow us to build a strategic reserve without new borrowing, leveraging Bitcoin's asymmetric upside as a store of value," she added. Analysts estimate the U.S. Treasury's 261.5 million troy ounces of gold could raise about $1.3 trillion at $5,000 per ounce. The value would grow substantially if Bitcoin appreciated into six-figure territory as modeled. The Treasury Department confirmed the debt crossed $38 trillion after adding $1 trillion in two months. White House spokesman Kush Desai said Trump has trimmed deficits by $350 billion this year but acknowledged deeper reforms are needed. "Structural change is necessary," Desai said, emphasizing long-term debt management remains a top priority. Trump can revalue US gold holdings to $5000 in order to reevaluate the price of gold from its pegged $42.22 set in 1971. At Novara Gold we do not think this will happen. It would undermine the security of our country to sell portions of our reserve . Other Central banks are buying at historical rates, why would the US do the exact opposite. We believe articles like this should be explained so folks can see how much misinformation there is . It would not make sense for the US to unload any gold holdings.