Global equity markets have dominated much of the financial media in recent years. The ascension of stocks following the major crash of 2008-2009 is certainly a story worth telling. Many investors who bought in heavily around those lows have likely amassed a small fortune as the market has continued to climb.
Nearly a decade into the bull market, however, the market is finally showing some significant signs of topping. Recent volatility could be a good indicator of a topping process already underway. Bull markets do not continue indefinitely, and the current bull market will be no exception.
As stocks have risen over the last 10 years, many commodity prices have remained subdued. Crude oil, gold and even grains have all seen sizable pullbacks from prior levels. Many of these markets have, however, begun to turn higher in recent months. This could be indicative of a sector-wide turnaround, and a protracted bull market in commodities could be seen over the next several years or longer.
This “shifting of the guard” could also point to the top for stocks. As commodity prices become more expensive, companies are forced to pay more for raw materials. Those higher production costs can eat into corporate profits, resulting in a lower stock price.
Increasing wages along with a weaker dollar could also fuel the commodity reflation trade. As wages climb, inflationary pressures may continue to build. Because many commodities are denominated in dollars, a weaker dollar makes them relatively less expensive for foreign buyers.
If you got into stocks near the lows of a decade ago, you may have seen an outstanding return on investment. Don’t let it get away by overstaying!
For those who missed the opportunity to buy stocks at highly discounted levels, you now have the opportunity to get into the commodity space which could see a similar or even more powerful run higher.
Given the economic and geopolitical outlook-including the risk of recession, increasing debt, a weaker dollar and increasing inflation, there is no better choice when it comes to commodities than gold.
This asset class has been considered a reliable store of wealth and value for thousands of years. It can not only appreciate in price, but can also potentially act as an important hedge against inflation, deflation, lower stocks and a weaker dollar.
The current global economic and geopolitical landscape could be the perfect recipe for sharply higher gold prices in the years and decades ahead. Declining fiat, inflation and the next major global slowdown could all fuel a rally that could take prices to previous all-time highs or well-beyond.
Adding this key asset class to your portfolio has never been easier, and now may be the ideal time to start building a significant allocation before prices move any higher.
Speak with an Advantage Gold account executive today about the potential benefits of gold ownership. Our associates are here to answer any questions you may have, and can even show you how easy it is to acquire and hold gold using your IRA account.
Don’t let the next great bull market pass you by. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.Tags: advantage gold, bull market, commodity, cycle, gold, inflation, raw materials