Goldman Sachs trader: This market "feels like the Hotel California," "you can check out anytime you like, but you can never leave."
Goldman Sachs trader Edoardo Greco stated that the current phenomenon of investors chasing stocks and gold is similar to a famous line in "Hotel California," emphasizing the lack of alternative investments. Due to low returns on fixed assets, gold has become the primary choice for hedging against depreciation. Goldman Sachs raised its gold price forecast for December 2026 to $4,900 per ounce, reflecting gold's strong performance over the past 40 years, especially during the 1970s and financial crises, when gold was seen as an important investment diversification tool
Goldman Sachs trader Edoardo Greco believes that the phrase from "Hotel California," "You can check out anytime you like, but you can never leave," seems to be the best description of the current investor community's pursuit of stocks and gold: as he explains, "when the real return on most fixed assets is only 2%, there are no suitable alternatives to stocks and gold... Yes, gold has performed well, but it has not yet reached the levels of the 1970s."
On a macro level, currency devaluation trades dominate as investors seek "hedges" to cope with widespread devaluation concerns. Gold has achieved one of its highest six-month returns in the past 40 years, and Goldman Sachs' commodities team has raised its December 2026 gold price forecast to $4,900 per ounce (up from $4,300 per ounce) amid continued fund inflows. Gold has proven to be an important diversification tool for the U.S. standard 60/40 investment portfolio during the 1970s and the global financial crisis.
