To The Moon

🌟🌟🌟As the 2 leaders from US and China prepare to meet in Gyeongju, the world holds its breath.  The Kuala Lumpur consultations laid the groundwork : TikTok, soybeans,  rare earths and tariffs all inching towards resolution.  Treasury Secretary Scott Bessent called it "very successful" but the results of the summit is what really counts.

Gyeongju Summit : The Culmination

This is where symbol meets substance.  The 2 leaders will either bless the framework, turning it into policy or reopen fault lines if trust falters.

Analysts see it as a make or break moment for market sentiment, especially in tech, commodities and Industrials.   They see the summit as a potential Inflection point - a chance to shift from tactical skirmishes to strategic cooperation.  But they warn: do not mistake calm for certainty.  The emotional whiplash of 2025 still lingers. 

The Markets' Reaction? 

Risks on winds blow strong as diplomacy steadies the tide.   

The S&P500 climbed 1.2% to 6,865.16, its first close ever above the 6,800 level.  The Nasdaq 100 rallied to 23,637.46 bolstered by a rise in Nvidia and other chip stocks.  The Dow Jones Industrial jumped 0.71% to 47,544.59.  All 3 of the major indexes closed at record highs. 

Chipmakers with the most to lose from the geopolitical tensions supported the rally on Monday.  $NVIDIA(NVDA)$  and other chip stocks rose more than 2%.

Is It Time to Exit Gold? 

Recent price dips of Gold maybe a healthy retracement after a strong rally.  It is not necessary the end of the bull run for Gold. 

Some experts suggest trimming profits if Gold stocks and ETFs are over extended.  However there are other analysts that advise against panicking and recommend holding Gold stocks and ETFs for long term stability.  Factors like geopolitical uncertainty, interest rates and central bank activity could continue to support Gold prices. 

My Personal Reflections

I will continue to hold $iShares Gold Trust(IAU)$  for 2 reasons : As a store of value and tactical hedge against inflation and geopolitical tensions. 

IAU is the 2nd largest Gold ETF after $SPDR Gold Shares(GLD)$  and an expense ratio of 0.25% which positions it among the lowest compared to competing Gold ETFs. 

I will also continue to dollar cost average into $SPDR Portfolio S&P 500 ETF(SPLG)$  due to its broad exposure to the S&P500 for diversification and its historical performance as a steady long term wealth builder.  SPLG has the lowest Expense ratio of just 0.02%.  Over many years, this small difference can lead to significant savings. 

The outcome of the US China Summit is not guaranteed, even with positive reports from preliminary talks.  Despite a recently agreed upon framework deal by trade officials, the history of unpredictable relations and deeper unresolved issues means a lasting comprehensive agreement is not a certainty. 

Nonetheless the S&P500 has generally tended upward over a long term period, due to the magic of compounding.   

Diversification is the key to building a resilient portfolio.  With SPLG, IAU, I have the best of both worlds. 

As Benjamin Graham likes to say :

"Diversification is an established tenet of conservative investment." 

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