Gold is good hedge against S&P 500, devaluation: Wells Fargo's Kwon

Economic Indicators - The upcoming CPI report is expected to have a binary impact on the equity market, with a skew towards positive outcomes if inflation data does not come in excessively high [2][3] - The current market setup is seen as unfavorable due to a lack of AI earnings, but the outlook improves with upcoming earnings from hyperscalers [2] Gold Market Insights - Gold is viewed as a strong investment opportunity following a recent selloff, driven by fiat currency devaluation rather than just the dollar [4][5] - A measure has been developed to assess the currency cycle, indicating that the current devaluation cycle began in 2022, coinciding with geopolitical tensions and monetary policy changes [6] - Historical data suggests that during periods of currency devaluation, the S&P 500 tends to underperform gold, making gold a favorable hedge against equity investments [7][8]