Wall Street's Iron Lady, Cathie Wood, has just issued a contrarian warning, suggesting that Gold is parabolic rally may be nearing a historic collapse.
🔹 According to Wood, the ratio of Gold is market cap to the US M2 money supply has hit an all time high, surpassing even the 1980 peak, a time when inflation and interest rates soared to 15%. This indicator suggests the precious metal is severely overvalued relative to the actual money in circulation.
🔸 Contrary to market fears about overheating tech stocks, Wood asserts "The bubble today is not in AI, but in Gold". She argues that the current parabolic growth is a classic sign of an end of cycle phase.
🔹 The trigger for this burst could be a strengthening US Dollar. Wood warns that history from the 1980-2000 period could repeat itself, where a recovering greenback caused $XAU prices to evaporate by over 60%.
As the world seeks safe havens, is Cathie Wood is assessment a brilliant wakeup call, or merely an attempt to defend her technology heavy portfolio?
News is for reference, not investment advice. Please read carefully before making a decision.
