After a crazy week of trading in global equity markets, things seem to have calmed down significantly-at least for now. Of course, if Chinese stocks fall several percent Sunday night, then U.S. markets could potentially be in for another difficult Monday. Aside from recent equity market volatility, markets may once again focus on interest rate expectations.
The next FOMC meeting is now less than three weeks away. While the Fed had previously indicated that any changes in rates would likely be a game-time decision, expectations for a rate hike appear to have shifted following the recent carnage seen in stock markets.
What might this mean for gold?
We are of the view that the gold market has already discounted the notion of higher rates. That being said, gold could see a significant effect if the Fed does in fact signal it will remain on hold.
As U.S. data continues to show some signs of improvement, China and other emerging markets are showing signs of weakness. This divergence may keep global markets on the defensive for the foreseeable future. It may also potentially keep pressure on the raw commodity sector, with commodities like oil and copper seeing less demand.
This may possibly keep a lid on U.S. equities and keep risk aversion levels elevated.
With higher overall risk aversion, gold and other precious metals may see renewed buying interest as investors seek out alternatives.
With or without a rate hike this month or in December, U.S. stocks may have potentially topped.
While gold may run to the upside if the Fed stays on hold, we feel that the yellow metals is also poised to run higher now regardless…
Much will likely be made of the upcoming Jackson Hole symposium and the Fed’s next meeting. While stock investors may potentially scrutinize every word, the reality is that for the long-term patient investor it really is nothing more than noise.
Markets go up, markets go down…That is the nature of markets…
For those investors that are interested in volatility, margin calls, forced liquidations and the potential for heavy losses, chasing returns betting on stocks going higher indefinitely may be the way to go.
For the patient, long-term and methodical investor, there may be a better way.
It’s no secret that portfolio diversification has the potential to reduce portfolio risk and volatility.
If you have enjoyed a steady stream of gains over the past several years as stocks have marched relentlessly higher, don’t you think NOW might be a good time to consider further diversification?
Global stock markets have shown what they are capable of this past week…
Are you interested in taking your money for another ride on the roller coaster?
If not, you may want to:
- Forget about the Fed
- Stop chasing returns
- Add further diversification
- Take matters into your own hands
One of the easiest ways to add diversification to your portfolio is through the addition of precious metals like gold and silver.
These metals have been a reliable store of value for thousands of years and cannot go bankrupt or default. They have the potential to add much-needed stability to the modern portfolio and may potentially even offer protection against inflation, deflation, currency or economic crises.
Stocks have shown you what they are capable of this week…Don’t you think NOW is the time to take action?
Fortunately, markets have calmed down a bit, and have recovered some of the recent losses. In our view, now is not the time to push your luck…
Do yourself a favor and consider the possible benefits of adding an allocation in gold, silver or other precious metals.
It has never been easier, and you can even use your existing IRA account.
Don’t wait for further stock market volatility. ACT NOW…
Please reach out to our experienced precious metals executives with any questions that you might have about investing in gold and the process of setting up a Gold IRA. Call us today at 1-800-341-8584 FREE to get started