Stocks Look to Rebound After Poor Start to December; Silver Continues Gains on Pathway to Triple Digits

As stocks entered the home stretch, they began to fade with the finish line in sight... story to be continued.

There are just 20 trading days left in 2025, and all indications suggest that it will go down as a solid, though unspectacular, year for equities. The Dow is up 11%; S&P up 16% and the NASDAQ ahead by 20% as of Monday's close. Those are pretty good returns, if they hold, which is why many fund managers have already closed their books and will resume buying or switching out in January. Life is good spending December in the Bahamas or Caymans.

The Dow took the worst of Monday's selloff, losing nearly one percent. As usual, it could have been worse... or better. The major indices erased most of the steep, early losses by midday, but all faded into the close. This is the kind of volatility that can be expected in an uncertain environment. Thank the government for that, at least partially, by delaying the usual economic reports - NFP and GDP in particular - and blaming their own shutdown for the lack of data.

Silver, after Friday's big run, cooled off a bit on Monday, especially after Arcadia Economics' Chris Marcus posted a note about it hitting 59 (and keeping going) in the futures market. Silver lost a bit of its mojo, but that's probably to be expected from an asset that's up 99% year-to-date. Silver won't stop rising, though there may be a few pullbacks, stutters, and surprises on its way to triple digits, where it belongs. Considering that the price of an ounce of silver would be $128 if the gold:silver ratio were a realistic 25:1 and even higher by historical standards of anywhere from 8:1 to 16:1.

Silver will be triple digits within 24 months, possibly within six.

Meanwhile, be on the lookout for the Santa Claus Rally, which usually occurs in the week between Christmas and New Year. Considering current valuations and the levels of naked greed and avarice on Wall Street, it may kick off sooner. Then again, December remains a great time to lock in gains and impress your friends.

Keep your stop losses close.

At the Close, Monday, December 1, 2025:
Dow: 47,289.33, -427.09 (-0.90%)
NASDAQ: 23,275.92, -89.76 (-0.38%)
S&P 500: 6,812.63, -36.46 (-0.53%)
NYSE Composite: 21,666.47, -158.21 (-0.72%)