Why JPMorgan Is Warning The Fed Rate Cut Everyone Expects Could Sink Stocks

08/11/2025

One suggestion from JPMorgan's trading desk, is that investors may want to consider either adding or upping their gold exposure as rate-cut expectations push down the dollar. Goldman Sachs, which expects another 2% gain for the S&P 500 this year, has also advised exposure to gold, through mining stocks.

Sept. 9, 2025

Stock investors could be facing a "sell-the-news" moment when the Fed meets this month, warns JPMorgan.

Since Fed Chairman Jerome Powell's comment that a rate-cut could be justified at Jackson Hole last month, the S&P 500 has gained nearly 2%, bringing the year's total to just over 10%.

Traders now expect three cuts in 2025, starting with a 25-basis point cut on Sept. 17, and several in 2026.

But what if that much-awaited first interest-rate reduction causes stocks to drop? That's the message from our call of the day as JPMorgan's trading desk warn clients that a potential selloff could be ahead.

The Fed's reaction function is a simply a reference to how a central bank adjusts its policy according to changing economic data. By that, the team is referring to how much inflation the Fed is willing to tolerate at the expense of shoring up the jobs market.

One suggestion from JPMorgan's trading desk, is that investors may want to consider either adding or upping their gold exposure as rate-cut expectations push down the dollar. Goldman Sachs, which expects another 2% gain for the S&P 500 this year, has also advised exposure to gold, through mining stocks.

** Information contained within this email should not be construed as Legal, Accounting, Tax or Investment advice. Patriot Gold Group is a Gold & Silver Dealer, representatives are NOT Licensed Financial Planners and do NOT give investing or tax advice.

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BNP Paribas: "Clearly Weaker" Economy Will Drive Gold Through $4,000 In Six Months

09/10/2025

After it breaks its historical top near $50 an ounce, he believes silver's "road is free to $100."

A top European strategist is forecasting that gold will reach $4,000 an ounce and silver $50 an ounce within the next three to six months, arguing that a rapidly weakening U.S. economy will force the Federal Reserve into aggressive action.

Philippe Gijsels, Chief Strategy Officer at BNP Paribas Fortis, made the call in an exclusive interview with Kitco News. His comments followed a bombshell report from the U.S. Bureau of Labor Statistics that revised U.S. job growth for the year through March down by a record 911,000 positions.

"Jarring Reality Check" for the U.S. Economy

"The job market is clearly, clearly weaker than that most people thought," Gijsels told Kitco News, arguing the data confirms the U.S. economy is slowing significantly. The BLS revision followed a summer where job growth averaged a meager 29,000 per month, with the June number revised to a net loss of 13,000 jobs, the first negative print since 2020. The news prompted JPMorgan CEO Jamie Dimon to state bluntly, "The economy is weakening."

For Gijsels, this means the Federal Reserve will be forced into more aggressive action than just rate cuts. When asked if the Fed would restart quantitative easing or implement yield curve control, he was unequivocal.

"That is exactly what they will do," he stated. "When push comes to shove, they will go there... it's going to drive them [real assets] even higher."

This political reality, he argued, leaves governments with only one politically viable option to manage their debt.

"The easiest way... is gradually letting inflation run a little bit at 3% or 4%," he said. He issued a direct and quantifiable warning to anyone holding cash savings: "If you are in cash... and inflation is only going to run at 4%, do that 10 years in a row while you're absolutely sure that you lose about 50% of your purchasing power... by doing nothing."

He concluded that this period will be a massive wealth transfer. "This is absolutely a moment in time... that fortunes will be lost and fortunes will be made."

In this environment, Gijsels sees an explosive upside for precious metals and the companies that produce them. With gold trading at all-time highs above $3,650 an ounce, he stated he would "even prefer silver" over gold due to its relative undervaluation and dual role as a monetary and industrial metal.

After it breaks its historical top near $50 an ounce, he believes silver's "road is free to $100."

** Information contained within this email should not be construed as Legal, Accounting, Tax or Investment advice. Patriot Gold Group is a Gold & Silver Dealer, representatives are NOT Licensed Financial Planners and do NOT give investing or tax advice.

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