Investors and global financial markets have done a fantastic job of remaining optimistic despite numerous potential headwinds. Ongoing tensions over global trade, higher oil prices and rising interest rates are just a few of the major issues that markets are contending with.
There is something else happening behind the scenes, however, that could point to major troubles ahead. The flattening of the yield curve is becoming more and more a cause for concern, and the idea of the curve becoming inverted is a distinct possibility.
An inverted yield curve simply means that short-term rates rise above longer-term rates. The yield on the two-year note is quickly approaching the same level as the yield on the benchmark ten-year note. This, in effect, means that investors are buying further out on the curve-and doing so for a reason: recession.
An inverted curve can be a very effective tool for predicting a recession, and the current state of the curve is clearly flashing a major warning signal. The question is: will investors listen?
What if you could have seen the tech bubble about to burst, or perhaps seen trouble in the housing market long before the financial crisis of 2008/2009. What if you knew it was time to shift and allocated your portfolio accordingly. What if you didn’t have to lose massive amounts of wealth as many did following previous recessions and/or market crashes. Think about it.
With this key warning signal becoming more and more apparent, now may be the ideal time to diversify your portfolio and book profits in stocks and risk assets. It may also be the ideal time to build or add onto positions in perceived safe-haven assets. Given the current economic and geopolitical landscape, physical gold bullion may be an ideal choice.
This key asset class may not only appreciate in value, but it may also potentially offer a meaningful hedge against rising inflation, lower stocks, a weaker dollar and more. Once the current bull market in stocks comes to an end, investors may be forced to go to cash or seek out alternative assets. Many of these investors, however, could see significant losses as the house of cards comes tumbling down. Now is the time to be proactive and seek out alternatives before the crowd. Once the rush is on, there is no telling just how high gold prices could go as the market could see massive amounts of investment capital coming in. If you prefer to buy low and sell high and want to try to get the best value for your money, now is the time to take action.
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 to buy this key asset class using your IRA account.
Don’t ignore the warning signals flashing right now before your eyes. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.Tags: advantage gold, financial crisis, gold, interest rates, treasury note, yield curve