Stock market volatility has returned and in grand fashion. As of this post, the broad market SP500 is down over 42 points, or 2.12 percent. The markets opened sharply lower this morning following the shortest trading day in Chinese equities in history.
Chinese stocks opened last night and dropped significantly right off the bat. For not the first but the second time this week, circuit breakers were triggered to halt trading… In fact, trading lasted for only about 30 minutes before being halted. The slide saw Chinese equities slump by a whopping 7 percent.
While the weakening of the yuan is cited by some analysts as the catalyst for the most recent drop in Chinese shares, concerns over the health of the world’s second largest economy continue to take their toll as do worries over the smell of deflation lingering in the air.
According to a recent article in money.cnn.com, the Dow Jones has lost over 900 points so far this year, equating to a loss of over five percent. In fact, the drop in Dow stocks to begin the year represents the worst four day percentage loss to begin a year on record according to FactSet…
And this may be just the beginning….
Already, some are comparing the current stock market route to what happened in 2008. If you don’t recall, 2008 was not a pleasant time for stock investors as the subprime mortgage crisis took hold and sovereign debt issues became the center of attention.
What is being faced by investors now could be right on par with 2008… Or much, much worse…
Billionaire trader and investor George Soros was recently quoted in the Sunday Times in Sri Lanka, stating that markets are “facing a crises and investors need to be very cautious.” The paper further reported Soros adding “China is struggling to find a new growth model and its currency devaluation is transferring problems to the rest of the world.”
Interestingly, recent market turmoil comes at a time when there is a significant
divergence being seen between U.S. markets and others around the world. The U.S. just hiked interest rates for the first time in nearly a decade, while other nations such as China and the European Union continue to battle poor economic activity with quantitative easing and other measures.
This divergence could lead to volatility in currency markets, interest rate markets and equities. Well, it seems very clear that this is, in fact, the case.
If that is not enough, consider this:
- The U.S. is in the midst of a Presidential cycle
- Crude oil continues to decline
- Commodity prices such as copper continue to fall through the floor
- A stronger dollar may hamper upcoming corporate earnings
- Tensions in the Middle East are elevated
- North Korea may have successfully tested an HBomb yesterday
Shall we continue?
What is being seen in stocks today and since the beginning of the new year may only be the tip of the iceberg…
Stocks could continue to drop sharply from current levels while you watch much of your hard-earned money go up in smoke.
Fortunately for you, It’s not too late.
Gold is sharply higher today as investors are looking for safe havens. In fact, gold prices shot higher last night at the same time U.S. stock futures were getting crushed…
Think this trend could continue? We certainly do.
So ask yourself: “Do I want to continue to watch my investment dollars dwindle as
stocks head sharply lower, or do I want to take action and do what I can to preserve my wealth?”
If you don’t want to see your investment portfolio in the toilet, now may be a good time to consider adding alternative asset classes. Hard assets like gold and silver have been considered a reliable store of wealth and value for thousands of years.
And what easier way to gain exposure to these key precious metals than in your IRA?
Gold prices are moving higher right now as I write. It appears that gold is breaking away from its recent trading range and could be headed back to levels not seen in several years.
Increasing market volatility, currency wars, the threat of deflation and geopolitical tensions may drive gold sharply higher in a short period of time…Don’t wait for more equity market losses. The time to act is now.
It’s never been easier… We strongly encourage you to call an Advantage Gold precious metals account executive today at 1-800-341-8584.
Our experienced professionals will guide you through the precious metals backed IRA account setup process and answer any questions you may have.
Don’t wait around for further stock declines and rising volatility. Call today.