Stock Market ‘Unstoppable’ as S&P 500 Hits 43rd All-Time High This Year Despite Economic Turmoil

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As an analyst with over two decades of experience navigating market cycles and geopolitical tensions, this current market scenario feels like a rollercoaster ride I never wanted to get on. The S&P 500’s rally is impressive, to say the least, but it’s hard not to feel uneasy when you consider the escalating geopolitical tensions and potential financial crises lurking in the background.

This year, the S&P 500, a significant indicator for the stock market, has surged over 20%, marking its largest increase since 1997. Remarkably, this impressive gain is being achieved amid escalating geopolitical conflicts and mounting worries about a possible economic crisis.

Based on reports from Kobeissi Letter on social media platform X (previously known as Twitter), the S&P 500 has nearly doubled the 11.7% growth it achieved last year and is delivering one of its top three performances since 1990, marking a record-breaking start to a presidential election year.

This week’s events have led to the index reaching its forty-third record high of the year, making it the strongest streak since 2021 saw seventy new records. Since last October, during a market correction when it touched its lowest point, the index has climbed by approximately 40%.

2024 News Flash: The S&P 500 surged an impressive 20.8% during the first three quarters of the year, marking its highest increase since 1997. This represents nearly double the 11.7% rise experienced in the previous year and is the third-strongest performance since 1990. Furthermore, it registered the best beginning to a presidential election year on record.

— The Kobeissi Letter (@KobeissiLetter) October 3, 2024

Due to this trend, the economic analysis suggests that the market is experiencing an invincible feeling right now. This growth coincides with investors seeking secure investments such as gold, where exchange-traded funds (ETFs) concentrating on gold and its mining industries have received approximately $3.3 billion in inflows since August.

As a crypto investor, I’ve noticed an unusually high demand for gold this year, which has propelled it towards its strongest annual return since 1979. Currently, gold is trading at approximately $2,645 per ounce, representing a staggering 28% increase from the beginning of the year. A year ago, gold was hovering around the $1,800 mark.

The cost of precious metals is rapidly increasing as the combined money supply in the U.S., Eurozone, Japan, and China has hit an all-time high of $89.7 trillion, growing an astounding $7.3 trillion in just the last twelve months.

In my recent analysis, I observed a notable surge in Gold’s price following a series of events. Specifically, Iran launched approximately 180 ballistic missiles towards Israel, which they claimed was a retaliation for the assassinations of Hamas’s political leader and an Iranian commander, as reported by the Iranian Revolutionary Guard Corps. This geopolitical tension seems to have influenced the market dynamics, potentially contributing to the rise in Gold prices.

Significantly, Societe Generale has entirely moved its commodity investment portfolio towards gold. This shift is primarily influenced by escalating geopolitical issues and a general downturn in the broader commodity market.

The French bank raised its gold reserves to make up 7% of its overall investment strategy, representing a substantial 40% increase from the previous quarter. This shift towards gold suggests an increasing trust in gold as a secure investment option during periods of market turmoil and uncertainty on a global scale.

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2024-10-05 06:04