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David Bird raises the question of whether precious metals have reached a significant low point. He encourages readers to consider if there could still be further downside or if a bottom has been established.
Bird cites the Gold to DOW Ratio, noting that it broke out back in April 2024, as a reason for his increased attention on the sector.
Bird has previously examined 18-year cycle peaks in the S&P 500, noting that these periods have not produced above-average returns over the last century (read more). He has also observed a decline in the outperformance of the Magnificent 7 stocks, which peaked in late 2025 (details here). These observations come as he now turns his focus to precious metals and sector ratios.