(Part 4 of 4) - my investing muse - Layoffs, how else to value S&P500?
My Investing Muse
Layoffs, closures and Delinquencies
Oracle is considering slashing up to 30,000 jobs as the company struggles with the cost of its AI build-out. - X user Markets & Mayhem
Peloton looks to cut about 11% of its workforce. - Bloomberg
US layoffs have surged to recessionary levels: US employers announced 1,206,374 job cuts in 2025, up +58% YoY, the highest since the 2020 Crisis. Excluding 2020, this was the worst year since the 2008 Financial Crisis. - X user Global Markets Investor
Chemical maker Dow is cutting 4,500 jobs and will rely on AI. - X user MacroEdge
My Final Thoughts
Here is the S&P 500 denominated in gold (i.e., the S&P 500 to Gold Ratio), which shows how many ounces of gold are equivalent to the S&P 500 index level at month-end closes (or closest available data). This is calculated as the S&P 500 index ÷ gold price per ounce (USD).Current/latest (as of late January 2026, around January 25–28): Approximately 1.32–1.37 ounces of gold (sources like Longtermtrends report 1.32 on Jan 25 with S&P ~6,979 and gold ~$5,282; slight variations exist due to exact daily closes). The ratio has trended downward over the last 6 months, reflecting gold's strong outperformance (gold surged significantly while the S&P 500 showed more modest/net flat changes in relative terms). At the end of July 2925, this index is 1.90 when the S&P500 stood around 6,339 and gold at $3,339 per ounce. It is a drop of over 30% since.
This is a flight from fiat where USD is the leading player. Wars and rumors of wars would be typical distractions. Let us not rule out black swans of famines, earthquakes, pestilences and other disasters (man made or natural).
Holding assets in USD may get painful when the USD is no longer trusted and used. Let us consider some hedging in other currencies, assets and markets.
Financial Strategy and Outlook
Let us spend within our means, invest only what we can afford to lose, and avoid leverage. Let us review our current holdings with the intention of divesting from businesses that are losing their competitive advantages. Additionally, I will consider adding both hedging strategies and defensive positions to our portfolio to mitigate risk.
As we move forward, it is crucial to conduct thorough due diligence before assuming any new responsibilities.
Wishing everyone a successful week ahead.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
