ATTENTION: CONCERNED AMERICANS

Wall Street's Election Year Pattern Points to
Major Market Shift Ahead

As gold hits record highs and markets reel from policy shifts, historical data suggests 2025 gains could precede significant 2026 downturn

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As markets digest today's 600-point Dow plunge and gold's surge to new records, a century-old pattern is gaining renewed attention among Wall Street veterans. This pattern has predicted major market turns with remarkable accuracy, and current market signals suggest it could be more relevant than ever.

The Historical Pattern That's Making Waves

The Presidential Election Cycle, studied extensively by major financial institutions including Goldman Sachs, Morgan Stanley, and Charles Schwab, has correctly anticipated market movements for over a century. According to research from Ned Davis Research, the second year of presidential terms consistently shows the worst market performance, with returns averaging 75% lower than the first year. This pattern has proven remarkably reliable, with bear markets occurring during the second year approximately 65% of the time.
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Today's Warning Signs

The impact of presidential policy decisions is already visible across markets. Walmart shares dropped sharply on warnings about slowing profit growth due to tariff concerns, while defense contractor Palantir saw its stock plunge 20% in two days following announcements of potential military spending cuts. The administration's implementation of 25% tariffs on steel, aluminum, automobiles, and semiconductors has sent shockwaves through multiple sectors, despite CEO confidence reaching a three-year high.

The Golden Signal

Perhaps most telling is gold's dramatic surge to new records above $2,900 an ounce, marking its eleventh record high of 2025. This unprecedented rally in the traditional safe-haven asset suggests sophisticated investors are already positioning for potential market turbulence ahead. With major policy changes typically taking 12-18 months to fully impact markets, Wall Street veterans are watching a dangerous confluence of signals: record-high stock valuations, surging gold prices, and a historically accurate cycle that's flashing red. The question isn't just whether current market highs are sustainable – it's whether mainstream investors will recognize the warning signs before it's too late.

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