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Virtus Investment Partnersâ chief market strategist Joe Terranova is reshaping his portfolio strategy heading into the new year.
Speaking with CNBC today, Terranova confirmed that heâs exited his position in one of the largest gold exchange-traded funds (ETFs) despite the precious metalsâ stellar run this year.
Terranovaâs decision to pull out of the SPDR Gold Trust (GLD) highlights the precarious balance between locking in profits and managing risk as investors prepare for an uncertain 2026. Â
Joe Terranova attributed his GLD move to a sharp overnight reversal in the precious metal, saying you canât ignore the sudden market shift we saw last night and do nothing.
âYou have to, at that moment, reduce your risk. Thatâs, in fact, what I did with the GLD.â
His approach reflects a disciplined strategy: capture gains when volatility spikes â then reassess opportunities once conditions stabilize.
For him, risk management outweighed the temptation to ride goldâs rally further.
While gold has been a standout performer in 2025, several factors could weigh on its price in the year ahead.
For example, expectations of a stronger US dollar, driven by resilient economic growth or tighter monetary policy, could weigh on precious metals as it typically does. Â
Rising real interest rates could also reduce goldâs appeal next year â as investors shift toward yield-bearing assets. Meanwhile, if inflation continues to moderate, the urgency to hedge with gold may fade.
And while geopolitical tensions remain a wild card, the emerging prospects of the Ukraine deal signal gold could lose its safe-haven demand in 2026 as well.
From a technical perspective as well, the picture isnât particularly compelling either. According to experts, following a step climb in the trailing 12 months, gold may face âupside exhaustionâ in the coming year, leaving it vulnerable to corrections.
All in all, for investors, 2026 could bring a more challenging environment for sustaining goldâs momentum.
Joe Terranovaâs decision underscores a broader theme for investors: even strong performers can become risky when valuations stretch, and volatility rises.
Goldâs surge in 2025 rewarded those who held on, but the path forward may not be similarly straightforward.
For disciplined managers, trimming exposure is not necessarily a bearish call â itâs a way to preserve capital and maintain flexibility.
As Terranova noted in the CNBC interview, opportunities to reâestablish positions often emerge once markets reset.
Heading into 2026, investors will need to weigh goldâs role carefully â balancing its safeâhaven appeal against macroeconomic headwinds.
In short, the coming year may test whether gold remains a star performer or retreats after its glittering run, especially if shifting monetary policy and global growth trends reshape investor sentiment.
The post Joe Terranova cuts exposure to gold ETF heading into 2026 appeared first on Invezz
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