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- 💔 The Market Wraps Up Its Worst Quarter Since 2022
💔 The Market Wraps Up Its Worst Quarter Since 2022
Plus, Gold has its best quarter in 40 years, Lululemon sinks 14%, and GameStop spikes and then falls again after Bitcoin announcement...
Maxwell Nicholson
March 30, 2025
MARKET OVERVIEW
💔 The Market Wraps Up Its Worst Quarter Since 2022
😰 In case you haven’t noticed, it’s been a rough quarter. After a small bounce back last week, the markets turned red again, with the S&P 500 falling a pretty significant -2.4% this week.
📉 While the quarter still technically has one day left (Monday), here’s how Q1 has shaped up as of market close Friday:
The S&P 500 is down -4.9%
The Nasdaq-100 is down -8.1%
The TSX is down -0.6%
Bitcoin is down -10.6%
🤖 If we look at some of the most popular tech stocks on Blossom, the picture gets even more grim:
Nvidia is down -20.7%
Tesla is down -30.5%
Apple is down -10.6%
📊 But not everything was red, if you look beyond tech, certain pockets of the market really shined this quarter, highlighting the importance of staying diversified:
👑 And last but not least, gold. While the market sank, gold soared, posting its best quarter in 40 years, with gold ETFs like $ZGLD or $CGL rising +17%
💡 I’ve already discussed the reasons for the recent downturn and my top tips for ‘surviving’ the crash in past editions of the Buzz, so this week I’m instead going to focus on the positives and try to answer the question: what’s going on with gold, and should I be investing in it?
👋 PS for those who are new, my name is Max and I’m the CEO of Blossom! Every week, I spend a good chunk of my Saturday writing the Weekly Buzz to keep you all updated on the latest stock market news of the week 😎 If you enjoy the Buzz make sure you follow me on Blossom where you can see my portfolio and on Instagram where I post investing videos and behind the scenes of building Blossom!
TOP STORY
👑 Is Gold a Good Investment Right Now?
🚨 Before we dive in, let me be clear - I am no expert here, so rather than share my own opinion let me try my best to summarize both the arguments for and against investing in gold right now, so you (and me, since I currently don’t hold any gold) can make our own informed decision.
✅ Reasons for Gold
First, the reasons for gold’s soaring prices are probably not surprising. When there is fear and uncertainty, investors tend to flock to gold due to its status as a ‘safe-haven asset.’
With the market back to a state of extreme fear and a full-on trade war going on, gold has a lot going for it…
📊 Protection Against Market Fluctuations
The first major reason many experts recommend gold is its low correlation to other asset types. When other investments decline, gold tends to rise in value, especially during economic and political shifts.
The metal has held strong throughout recessions, wars, and market turbulence, and according to State Street (the ETF provider behind $SPY), potentially offers one of the best and most efficient forms of portfolio diversification (compared to alternatives like REITs, other commodities, or Bitcoin)
⭐️ In the market crash of 2008 for example, Gold rose +5% while the S&P 500 fell -38.5%
📈 More Room to Climb
Ok, but with gold ETFs like $ZGLD up +45% over the past year and hitting all-time-highs, is there still room to grow? Well some experts seem to think so.
Over the past week, analysts at Bank of America increased their price forecast to $3,500 by 2027 (13% above the current price of $3,100), and Goldman Sachs expects gold prices to end the year at $3,300. JP Morgan is also optimistic:
“We maintain our multi-year bullish outlook on gold. A universal tariff scenario would likely supercharge the broad price effects for precious metals. Boosted economic growth concerns and higher inflation risks could continue to fuel strong investor demand for gold”
🏦 Most analysts point to increased demand from central banks across the world as a big driver for continued price increases, with the People’s Bank of China announcing an increase to its gold reserve in November.
🤔 How Much Gold Should You Hold?
👀 So if you're sold on gold, how much gold should you hold?
Well, according to advisors, it seems 5-10% of the portfolio is the sweet spot, depending on your goals and risk tolerance. But some investors (like Warren Buffett) say to avoid gold entirely.
But before we get into the reasons against gold, a quick word from this week’s sponsor BMO Global Asset Management!
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TOP STORY CONT.
❌ Gold: Reasons Against
👴 Buffett’s Thoughts
Before you go and buy gold, let’s take a look at some of the arguments against, starting with a quote from legendary investor Warren Buffett:
“I have no views as to where gold will be in the next five years, but the one thing I can tell you is it won’t do anything between now and then except look at you. ”
Buffett’s main point is that, unlike a company that generates profits and cash flows, gold doesn’t produce anything. Comparing gold to stocks like Coca-Cola, Buffett says:
“It’s a lot better to have a goose that keeps laying eggs than a goose that just sits there and eats insurance and storage.”
📊 Gold’s Underperformance
Over the long term, gold has underperformed stocks and bonds. Over the past 30 years, for example, a $10,000 investment into stocks would now be worth $216,000 (10.7% avg return) compared to only $59,000 if invested into gold (6.1% avg return)
😰 High Current Prices
On top of the underperformance over the long term, with gold at an all-time high, there are many other experts who think the asset is overheated and may pull back and underperform in the short term.
If geopolitical tensions ease (i.e. with conflicts in Ukraine and Gaza), tariff uncertainties subside, or the pace of interest rate cuts, are slowed, gold’s rally may lose steam.
Overall, Buffett puts it best:
“Gold is a way of going long on fear.... but you really have to hope people become more afraid in the year or two years than they are now. And if they become more afraid you make money, if they become less afraid you lose money.”
🌼 As for me, I think I’m going to trust Buffett with this one and stay out of gold, but I'm very curious to hear your thoughts - vote in my Blossom poll and join the discussion here!
IMPORTANT ANNOUCEMENT
🤑 Invest in Blossom (on April 14!)
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📧 To make sure you get emailed when the round is opened (and to get 48 hours early access), make sure you sign up on the waitlist (where you can also find the pitch deck linked with more details about Blossom).
ALSO IN THE NEWS
🗞️ Other Key Headlines this Week
🧘♀️ Lululemon Tumbles 14% After Earnings Amid Tariff Worries
Lululemon ($LULU) sank -14% on Friday after fiscal Q4 results beat targets but 2025 projections disappointed investors.
Despite revenue rising 16% to $3.2B and earnings per share of $5.29 beating expectations by 6%, Lulu’s warnings of margin pressure from new US x China tariffs spooked investors - with profit margins expected to fall by -0.6%
US sales growth also slowed to 9%, down from 29% last year, raising concerns about weakening demand and a potential recession
Many analysts are turning sour on the stock and lowering price targets, with Bernstein predicting Lulu will face the first sales decline since 2006
Friday marked the company’s 2nd biggest stock drop in the past 5 years with Lulu now down -42% from all-time-highs in December 2023
🚀 Rocket Lab Up 6% After Being Selected to Join the US $5.6 billion National Security Space Launch Program
Rocket Lab ($RKLB) jumped 6% after being named one of the companies eligible for national security launches under the U.S. Space Force’s NSSL Phase 3 program
The program, worth $5.6B over 10 years, includes heavyweights like SpaceX and Blue Origin - marking a major milestone for Rocket Lab’s growing capabilities
Rocket Lab will compete for contracts beginning in 2025 using its upcoming Neutron rocket, which is still in development
CEO Peter Beck called the move “the starting line” for deeper U.S. government partnerships as Rocket Lab expands beyond small satellite launches
Rocket Lab has soared +356% in the past year, becoming a popular stock in the Blossom community with now over 1,000 holders
🛢️ GameStop Jumps 15% and Then Plummets 25% After Annoucing Plans to Raise $1.3 Billion to Buy Bitcoin
GameStop ($GME) surged 15% mid-week after revealing plans to raise $1.3B by issuing convertible bonds to purchase Bitcoin and fund general operations
The rally was short-lived with shares tanking 25% the next day as investors balked at the crypto pivot and dilution risk
The zero-coupon notes will mature in 2030 and can convert into shares, sparking concerns of overvaluation and speculation-driven strategy
Analysts widely questioned the move, with most calling it a distraction from GameStop’s lack of progress on core retail turnaround efforts
💊 23andMe Files for Bankruptcy, Now Down 99.7% Since IPO
23andMe ($ME) filed for Chapter 11 bankruptcy this week after failing to turn around its struggling genetic testing business.
The company went public via SPAC in 2021 at a $3.5B valuation and has since collapsed over 99.7% to less than a $20M valuation
CEO Anne Wojcicki said 23andMe will continue operating during the process while seeking a buyer for parts of the business
Many are worried that customers genetic data could be sold off during bankruptcy, sparking scrutiny over data protection
FROM THE BLOSSOM COMMUNITY
⭐️ Featured Discussions this Week
👇 Click to see the full post!
BMO Global Asset Management Disclaimer
This article has been sponsored by BMO Global Asset Management.
This material is for information purposes only. The information contained herein is not, and should not be construed as, investment, tax or legal advice to any party.
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