Stocks just seem to keep going and going…Markets have moved higher on the notion of significant tax reforms and a big boost in fiscal spending. Financials have cheered on the idea of less regulation and potentially higher interest rates. Much of the economic data has continued to point to ongoing improvement, and inflationary pressures are on the rise.
While it seems right now that markets could potentially continue higher from current levels, some believe that the markets may be in for a big surprise.
In a recent interview on CNBC’s Futures Now, former top federal budget official David Stockman discussed his views. He seems to be of the opinion that a disaster is brewing, and that investors will not see it coming.
Although investors felt more optimistic following President Trump’s address to Congress, Mr. Stockman referred to the speech as “irrelevant” to what he says lies ahead for the market and economy.
In the article, Stockman was quoted as saying: Wall Street is totally misreading Washington. It’s pricing in a fantasy about a Trump stimulus that simply isn’t going to happen. There will be no tax cut, there will be no 15 or 20 dollar a share reduction in the corporate rate.”
According to Stockman, the “debt ceiling trap” will stand in the way of tax reform, infrastructure and defense spending.
Stockman believes that government gridlock could potentially lead to a government shutdown. He was quoted as saying “We will have a government shutdown. It is totally unexpected, unpriced in by Wall Street, [and] it will spook everybody.
Overall in spite of optimistic commentary from Fed officials and others, Stockman appears to be unimpressed. He was also quoted as saying: I see nothing to re-accelerate the economy or profits, and I see a huge mess, bloodbath, fiscal stalemate In Washington that will remove any of the stimulus that any of the traders are expecting from infrastructure and big tax cuts and all the rest.”
A less than optimistic outlook to say the least…
This is just one of the reasons that you may want to consider physical gold as part of your overall portfolio. Gold may potentially provide a meaningful hedge against a number of economic and geopolitical issues. Some of these issues may include inflation, declining currency values, declining purchasing power and more.
In the case of a government shutdown, investors could potentially panic and perceived safe haven assets like gold could potentially see buying on a massive scale.
Along with the potential for price appreciation and its potential ability to hedge against inflation and other issues, gold may simply bring peace of mind.
Isn’t it time you had some?
Fortunately, adding physical gold to your portfolio has never been easier than it is today. Speak with an Advantage Gold account executive today about the potential benefits of physical gold ownership. Our associates are here to answer your questions, and can even show you how to buy and hold physical gold using your IRA account.
Don’t wait for the next market collapse or a debt ceiling showdown before taking action. Explore your options today. Call 1-800-341-8584 to get started.Tags: advantage gold, david stockman, debt ceiling trap, gold, government shutdown, gridlock, trump stimulus