Global Markets Surge with Promising Returns as 2025 Concludes
Global markets have delivered remarkable returns as 2025 draws to a close. The S&P 500 is poised to finish the year with an 18% gain, while the Nasdaq Composite and Dow Jones Industrial Average are set to rise by 22% and 15%, respectively. Precious metals have outperformed, with Gold surging 75% year-to-date and silver skyrocketing 172%, reaching a total market value of $4.5 trillion.
Looking ahead to 2026, the Kobeissi Letter suggests a 'dream year' could unfold if the U.S. Federal Reserve maintains its easing trajectory. After three rate cuts in 2025 and the end of quantitative tightening, markets anticipate further monetary policy loosening. A new Fed Chair could accelerate the pace of rate reductions.
Political dynamics add another LAYER of speculation. Donald Trump's advocacy for a 1% interest rate and stimulus checks funded by tariffs keeps liquidity discussions alive. Lower borrowing costs may fuel appetite for risk assets, including cryptocurrencies and equities, as investors rotate capital following record highs in gold and silver.