Record Highs for Gold, Bitcoin, Stocks as Liquidity Flows Boost Assets
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Gold, bitcoin, stocks like the S&P 500 and Nasdaq, and the Nikkei 225 have recently hit record highs due to positive sentiment and liquidity flows.
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Bitcoin is benefiting from prospects of Fed rate cuts, a weaker dollar, geopolitical tensions, crypto ETF launches, and an upcoming "halving" event.
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Gold remains attractive as a physical asset investors can hold, although bitcoin may lure some investors away over time.
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The S&P 500 trading at 2.4 times the gold price suggests neither is clearly over or undervalued relative to historical norms.
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Continued liquidity and loose monetary policy could lead to further simultaneous gains across these asset classes.