Geopolitical "Anvils" Hanging Over Market Rally, Gold Bull Case Over Bitcoin

Market Overview - The equity market has shown resilience despite recent selling pressure, with the S&P 500 near all-time highs and the equal-weighted S&P up 6-8% year-to-date [3][4] - There is a broad bull market, but certain sectors have been heavily impacted, particularly those exposed to AI disruptions [2][3] Sector Performance - Technology stocks are experiencing mixed sentiments, with some positive outlooks for companies like Palantir and Apple, especially with upcoming product launches [4][5] - Sectors such as oil field services, copper mining, and chemicals are performing well, indicating that not all sectors are equally affected by AI advancements [7] International Markets - Japan's market is performing strongly, with significant interest in Japanese equities due to corporate governance reforms and fiscal policies [14][17] - China continues to export disinflation, with expectations of 2-4% deflation in real estate, which may help keep global inflation in check [12] Cryptocurrency and Commodities - Bitcoin ETFs have seen significant outflows of $5.8 billion, while Abu Dhabi has invested $1 billion, indicating a divergence in market sentiment [19][20] - Gold is viewed as a safe haven amid deflationary pressures, with expectations that it may rise above $5,000 again [21][23] Small Cap Stocks - Small cap stocks are performing well, with the Russell 2000 index showing positive trends despite broader market concerns [26][27] - Wisdom Tree emphasizes the importance of small caps in their investment strategy, highlighting their historical performance and growth [25][27]