Wall Street’s seemingly spectacular rally has a striking flipside: the S&P 500 has doubled in dollar terms since the beginning of 2023, but investors measuring their returns against gold have suffered a 21% decline, according to Jefferies’ global head of equity strategy Christopher Wood.
The divergence cuts to the heart of Wood’s warning that efforts to suppress US bond yields may support equity prices in nominal terms while steadily eroding the value of the currency in which those returns are measured.
