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Morning Brew October 22 2025
Summary: Equities Mixed, Precious Metals sell off
Good Morning,
Yesterday saw some interesting dynamics in the markets, with equities showing mixed results. The day's standout event was a significant drop in precious metals.
The Dow gained nearly 0.5%, the Nasdaq fell a bit, and the Dow was flat. General Motors jumped 15% with a strong outlook, 3M rose almost 8%, Coca-Cola went up 4%, while Netflix dropped nearly 6% after releasing its earnings report. Analysts now expect S&P 500 earnings for the third quarter to grow 9.2% year-on-year, slightly up from their initial 8.8% estimate.
Gold had its biggest decrease in five years without any major news driving it, largely because it was overbought following recent gains. Silver fell nearly 10%, with implied volatility jumping to 40%. Charu explored the reasons and effects, pointing to:
- Overbought conditions after recent rallies.
- Decreased physical demand in India after Diwali.
- Improved risk sentiment due to positive U.S.–China trade talks.
- A stronger U.S. dollar putting pressure on metals.
- Investor caution due to the U.S. government shutdown and uncertain market positions.
For long-term investors, this is a great time to consider your position and make thoughtful adjustments rather than react emotionally.
- Rebalance, Don’t Panic
Market corrections are normal. Instead of rushing to sell, adjust your exposure to stick to your target levels, helping you avoid locking in losses during volatile times. - Focus on Quality
Take advantage of weak periods to boost quality. Look for miners with strong financial health, low production costs, and diverse operations. These companies tend to bounce back quickly. Alternatively, consider diversified ETFs or royalty companies for smoother investments in metals. - Invest Gradually and Pair with Bullion
If you're looking to increase exposure, consider dollar-cost averaging—a slow and steady approach rather than chasing short-term dips. Pairing mining stocks with bullion ETFs can also help balance returns and manage volatility over time.
Remember, the long-term factors supporting gold—like demand from central banks, fiscal expansion, and diversification needs—are still strong. These pullbacks can be good opportunities to reassess and strengthen your portfolio.
Headlines:
- A planned summit between U.S. President Donald Trump and Russian President Vladimir Putin was postponed as Russia rejected an immediate ceasefire in Ukraine, throwing negotiations into doubt.
- Japan's new Prime Minister, Sanae Takaichi, is working on an economic stimulus package expected to exceed last year's $92 billion.
- Britain's inflation rate stayed at 3.8% in September, contrary to expectations, as recent figures showed.
- Warner Bros Discovery’s board turned down a nearly $60 billion offer from Paramount Skydance.
Oct 22 Wed: UK – CPI
Hilton, AT&T, ThermoFisher, Tesla, IBM, Texas Capital Bankl, SAP, Alcoa, Knight,
Oct 23 Thu: US - Initial Claims, Home Sales, Canada Retail Sales, EU Consumer confidence
American Airlines, Honeywell, Intel, Newmont, Ford,
Oct 24 Fri: UK - Retail Sales Japan CPI, UK Retail Sales, International PMI, Eurozone - Markit Manufacturing PMI, US CPI & PMI
P&G,