Market strategists at Evercore ISI, led by Julian Emanuel, say the pronounced selloff in gold and silver that followed "frantic, Meme-like trading" does not represent a meaningful threat to the broader equity market. Instead, they view the pullback as a corrective move that helps calm concerns about mounting systemic risk and returns investor focus to stocks.
Evercore's team points out that a number of assets experienced parabolic upward moves in early 2026. Their note lists precious metals, copper, memory-chip shares, South Korean equities and the Chinese yuan as examples of markets that ran well ahead of underlying fundamentals. The strategists attribute those extended moves to several interacting forces - years of easy monetary policy, a weakening dollar and increased demand tied to AI-related investment.
Despite the scope of those ramp-ups, the firm emphasized that the retreat in Parabolic Gold and Silver following the meme-like trading episode is not a material headwind for stocks. In their view, the pullback "puts to rest fear of building systemic risk and turning focus back to equities." The strategists argue that such reversals are typical after assets reach extreme momentum conditions and noted that a number of markets displayed historically overbought technical readings in recent months.
Evercore also highlighted that heightened volatility is an expected feature at this stage of a multi-year equity advance. The team wrote that "Year 4 of the Bull, by all rights, should be more volatile, and so it is," adding that sharp swings often accompany strong market rallies without necessarily signaling their end. They cautioned against interpreting increased volatility as confirmation of a trend reversal, arguing instead that these moves can create opportunities.
Given these assessments, Evercore reiterated a constructive posture on equities. The firm remains particularly positive toward sectors tied to AI deployment - naming Communication Services, Consumer Discretionary and Information Technology as areas where they see attractive exposures. They pointed to the combination of earnings growth, lingering stimulus effects and continued AI-driven investment as elements that should help sustain the broader uptrend through 2026.
While the strategists acknowledge the market's elevated momentum and the likelihood of further swings, their core conclusion is that the recent selloff in certain assets reduces systemic-risk concerns and refocuses capital markets on the underlying equity case, especially where AI-related demand supports earnings and investment.