Global markets have exhibited a large degree of calm in recent weeks. That prevailing sense of calm, however, could potentially be hit by some tidal waves in the week ahead. Over the next several days, there are several major issues that have the potential to be market-moving.
Over the weekend, the G7 meeting in Canada could make a splash as tensions are running high over global trade. The issue of global trade and the potential for a significant trade war have been a major source of angst in the markets for some time now, and without any progress being seen the issue could quickly deteriorate further. This could lead to an erosion in risk appetite and widespread selling across risk assets.
The highly anticipated meeting between President Trump and North Korean leader Kim Jong-Un is also set to take place next week in Singapore. This meeting could be critical for the desired denuclearization of the nation. The meeting has the potential to improve relations between the nation and the U.S. and its allies, however, it also has the potential to exacerbate worries over the country’s nuclear ambitions if progress towards a lasting deal cannot be made.
Then there is the Fed meeting next week. The central bank is widely expected to hike rates by another 25 basis points, possibly signaling to markets that is has increasing confidence in the economy and is monitoring inflation.
The following day, the ECB will be meeting and is widely expected to announce the end of its bond buying program. The two central banks could, in essence, send a message to global markets that the era of cheap central bank money is over.
Needless to say, all of these events could go as planned over the next several days. There is always, however, the possibility of surprises.
With global tensions running high, and possibly even higher following these key events, market volatility could begin to accelerate.
The amount of “unknowns” in the global marketplace currently is a prime example of why every portfolio needs to have an anchor. This “anchor” should be an asset class with a long history as a store of value, medium of exchange and protector of wealth. It should have significant upside price potential, but even more importantly, should provide a meaningful hedge against inflation, deflation, declining paper currency values and crashing stock markets.
There is one asset class that has been considered a reliable store of wealth and value for thousands of years. This asset class not only has significant upside potential, but may also potentially provide an effective hedge against the economic and geopolitical issues outlined above. This asset class is physical gold.
Adding gold to your portfolio has never been easier, and it can be the ideal “anchor” for your portfolio through bull and bear markets. 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 simple it is to build an allocation in this key asset class using your IRA account.
Don’t wait for the next major stock market crash, or for inflation and a weaker dollar to erode your portfolio. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.Tags: advantage gold, denuclearization, ecb, g7, global trade, gold, interest rates hike, kim jong un, trump