The gold market is in the midst of a pullback from recent highs although the uptrend remains intact. Investors had been anxiously awaiting President Trump’s tax plans which did not seem to deliver much following the recent hype. In fact, the plans were fairly vague and will take significant time to work through.
This begs the question of what could potentially be the next bullish catalyst for stocks. Earnings perhaps? A calming of geopolitical tensions? Perhaps a fiscal spending package?
Although any one of these things could potentially boost stocks, it appears that equities may simply be running out of bullish ammo. This does not come as much of a surprise, as stocks have been on the rise for almost a decade now.
In recent weeks, gold has been showing strength in spite of stocks failing to really break down. Is this trend likely to continue?
Probably not in our view…
Although stocks have rebounded in recent days, nothing has really changed. The same issues that were fueling volatility in recent weeks are still present, and may remain significant for some time to come.
It does not appear that North Korea will back down anytime soon…
It does not seem like U.S./Russian relations are improving.
The Trump administration may continue to have a challenging time get things done.
With the numerous potential roadblocks ahead for stocks, how likely is it that stocks continue their multi-year ascent?
If you take an objective, unemotional look at the economy and the stock market, we think you may come to the conclusion that there is far more downside risk at this point than upside risk. Could stocks keep going higher? Absolutely. Will they? Who knows? The higher they get, however, the harder they may potentially fall when the next crash arrives.
And you don’t want to be along for that ride…
The recent rebound in stocks could simply be one of the last breaths of a dying bull market. As markets often do, the stock market will try to suck everyone in before it meets its demise. Don’t fall for this trap.
Now may be an ideal time to consider alternative asset classes. Hard assets like physical gold, silver and other metals may potentially increase in value from current levels, but may also provide a meaningful hedge against a number of geopolitical and economic issues like inflation, declining currency values, slow global growth and more.
Adding these key assets to your holdings has never been easier.
Speak with an Advantage Gold account executive today about the potential benefits of physical gold ownership. Our associates are here to answer any questions that you may have, and can even show you how to use your IRA account to begin building a physical gold portfolio.
Don’t wait for the next major stock market crash or for gold prices to rise from current levels. Explore your options for gold ownership now. Call Advantage Gold at 1-800-341-8584 to get started today.Tags: advantage gold, catalysts, gold, north korea, pullback, tax plan, trump administration