After moving sharply lower on tariff fears to start the week, stocks rallied as most economic indicators point to an economy that’s growing strongly. An in-line reading on the November PCE inflation index, combined with better-than-expected jobs numbers and a final read on third-quarter GDP of 4.4% are all examples of an expanding economy.
But precious metals may tell another story. Gold and silver both pushed to new record highs, with the possibility that gold could hit $5,000 and silver $100 by the time investors read this.
This indicates to investors that they might be seeking safe havens while still driving many stocks upward. As a result, corporate earnings will distinguish the winners from the losers. The expectation is for strong earnings, but investors have already seen examples of why the forward guidance may be more important than the headline numbers.
