Daily Gold Market Report

Decade of Stagnation:
Top Fund Manager Predicts ‘Dead Ball’ Era for Stocks Amid Inflation Fears

(USAGOLD – 4/16/2024) Gold prices slightly lower this morning after seeing some routine profit-taking pressure. The overall market continues to be somewhat uneasy due to increased geopolitical tensions. Gold is trading at $2374.39, down $8.75. Silver is trading at $28.28, down 59 cents. A top fund manager, Bill Smead, has warned that the stock market may be entering a “dead ball” era, potentially lasting a decade or more, with minimal returns and possible significant losses akin to those experienced during the dot-com bust and the 2008 financial crisis. Smead attributes this bleak outlook to the possibility of prolonged high inflation and interest rates, drawing parallels to the economic conditions of the 1970s. Despite the S&P 500’s 6.6% rally in 2024, Smead cautions against investing in overvalued sectors like AI and mega-cap stocks, which he believes are in a speculative bubble. Instead, he suggests that opportunities may lie in sectors that typically benefit from inflation, such as oil and gas, real estate, and gold. While Smead’s view is bearish, the consensus on Wall Street remains optimistic, with many investors bullish on stocks for the next six months.