McGlone Warns Gold Premium Has Surpassed 2008 Level, Putting S&P 500 and Bitcoin at Risk of Pullback

Bloomberg strategist Mike McGlone uses the gold premium as a gauge of demand for safe-haven assets. The measure has climbed to its highest level since 1980 and surpassed the level seen on the eve of the 2008 financial crisis. That suggests investors increasingly favor precious metals, adding repricing pressure on highly valued U.S. stocks and bitcoin.

McGlone recently warned that the S&P 500 could fall about 25% if it breaks below its 20-quarter moving average and reverts to its long-term mean, a move that could also signal a recession. He reiterated his bearish view on bitcoin, saying it could lose key support and shift from a risk-asset “leader” to a “laggard,” while continuing to underperform precious metals such as gold.