The Dow closed above 54,000 for the first time ever this month, and the S&P 500 has been setting fresh records of its own. Now some Wall Street forecasters are floating a target of 8,000 for the S&P before too long. Big round numbers like that make for easy headlines. They also tend to distract from what's actually driving the move underneath them.
Sponsored by Golden Portfolio
Buy a dollar of gold for 36 cents [the math is real]
Right now, you can buy a dollar of gold for about 36 cents.
I know that sounds like it should be impossible…
But here's how:
The major gold miners are throwing off record cash flow at today's gold price – despite gold’s recent pullback.
The four largest gold mining companies have never had this much free cash flow. Ever.
Even at $4,000 per ounce gold, they are the most profitable they’ve ever been. But they have a problem…
When major gold miners make record profits on a gold price handing them margins as high as 75%, they do one of two things:
The return money to shareholders in the form of dividends and share buybacks…
Or, they buy out the best junior mining assets as a means to secure future gold production.
Now, here’s the thing…
The best junior assets are selling as if the gold price is still stuck at $1,800 an ounce – not $4,000+ like today.
That means you can buy the best buyout targets – before they get snapped up by gold majors looking to secure future output.
That’s how you buy a dollar of gold for 36 cents.
Go here and I’ll show you details on my top three buyout targets
My top picks are up as much as 2,050% since early 2024...
And they STILL trade at a 64% discount to the value of their assets.
Read that again.
The whole portfolio is up as much as 1,200% in roughly two years – and they’re still undervalued by 64% when compared to their gold reserves.
I call this bizarre price discrepancy the Golden Anomaly.
It only exists early in a gold bull market... and it doesn’t last long.
So you can pay full price after the gap closes...
Or, you can buy a dollar for 36 cents while this Golden Anomaly still exists.
Go here to see my Golden Anomaly portfolio
Garrett Goggin, CFA, CMT
Lead Analyst and Founder, Golden Portfolio
Where the Optimism Is Coming From
The current run higher has been built on a mix of strong corporate earnings, a rebound in big tech and chip stocks, and growing relief around a possible reopening of the Strait of Hormuz. On top of that, money markets are now pricing in less than a coin flip's chance of a Fed rate hike in September, which is another way of saying investors increasingly expect the Fed to stay accommodative rather than tighten further.
A Price Target Is a Bet, Not a Forecast of Your Life
An analyst calling for 8,000 on the S&P 500 is making a statement about corporate earnings, interest rate expectations, and market multiples. It says nothing directly about grocery prices, credit card rates, or how easy it is to find a job. Those two worlds move on related but distinct timelines, and a rising index can coexist for a long stretch with a household budget that doesn't feel any looser.
Why the Round Number Gets All the Attention
Numbers like 8,000 stick in headlines because they're memorable, not because they represent some meaningful threshold in the economy. The market doesn't behave differently crossing 8,000 than it did crossing 7,999. What actually matters is the pace and durability of the earnings growth and rate environment behind the move, which is a lot less quotable than a single round number.
Final Take
If you're invested in an index fund, a run toward 8,000 is worth paying attention to and, if it happens, worth feeling good about. Just don't let a big target number stand in for a read on your own financial situation. The stock market and your household budget can be having very different years at the same time, and a headline price target doesn't resolve that gap either way.
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Written by Deniss Slinkins
Millionaire Core
