An analyst warned that huge gains in the stock markets, despite the serious economic impact of the coronavirus, could soon be a thing of the past.

In a Sept. 4 tweet, Mike McGlone, chief product officer at Bloomberg Intelligence, said gold may soon appear when markets hit a “tipping point.”

Strategy: Payback may come soon on stock markets
He wrote: “In Battle of the Bulls, we see more resilience in favor of #gold on Nasdaq.”

“The mystery of the monetary and economic stimulus that is increasing most assets may be approaching a turning point as confidence in quantitative easing and financial deficits further expands the gold base.”

McGillon referred to an important market phenomenon in the last six months – equities continued to rise and reached new heights as central bank interventions in the economy reached unprecedented levels.

Previously, analysts assumed that the market value of the stock no longer mattered due to the extent of the manipulation since March.

Both gold and Bitcoin (BTC) have benefited from the uncertainty surrounding the shares since July.

Bitcoin and gold offset by new dollar pressure
Another interesting point is the US Dollar Currency Index (DXY), which recently fell to its lowest level in two years. As for Peter Schiff’s gold flaws, the outlook for precious metals is also favorable thanks to geopolitical shifts due to the weakening US dollar.

Discussing the news that China plans to cut dollar exposure, Schiff said ordinary Americans, as before, end up paying the bills.

“If this is true, then this is very important,” he wrote on Twitter.

“I actually feel that China wants to reduce access to more information. Other countries are likely to do the same. This means that the Fed will need a much larger printing press, and it is better if the Americans are actually willing to pay! ”

Schiff added that during this week’s increase, gold hit bitcoin, leading to even greater losses. However, the new strength of DXY can create problems for optimism about both origins.

The Cointelegraph previously reported frightening parallels between Wednesday and 1929, the year of the infamous catastrophe that marked its 91st anniversary on Friday.

Source: CoinTelegraph

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