Stocks are sharply lower in early trade on Wednesday, as concerns over Turkey and possible contagion risks continue to fuel risk aversion. Investors also remain concerned about the ongoing war over trade and the potential for further escalation.
Recent stock market volatility and selling could very well be just the beginning-there could be significant more downside to come. Numerous warning signs are being seen, from current action in emerging markets to the copper market. Copper is often considered a barometer of overall economic activity, and with prices recently reaching their lowest level in over a year, concerns are likely mounting that a major global slowdown could be seen.
Just today, Guggenheim Partners Chief Investment Officer Scott Minerd sounded off his own alarm, stating in a tweet that:”If there were ever a moment to harvest gains and reduce risk, it is August 2018. And if it turns out not to be the moment, I don’t think you are giving up much upside.”
If that simple statement doesn’t hit the nail on the head, nothing will. Although Minerd acknowledges the possibility of being wrong, he makes and excellent point: so what if he is? Stocks have been moving sharply higher for a decade now, and the global expansion could very well be in its final stages. No matter how you slice it, there is not likely much, if any, more upside to be had from current levels in stocks.
This would seemingly indicate that it is only a matter of time before the next major crash or bear market gets going. That being said, investors should be asking themselves if the current risk/reward scenario in equities makes sense. Taking an objective point of view, it would be difficult, if not impossible, to argue that getting long equities at current levels makes a great deal of sense.
A significant asset reallocation could be seen in the months or even weeks ahead. Once stocks really begin to show further signs of weakness, panicked investors will be looking for alternatives in which to put capital to work. The gold market could potentially be a major benefactor once investors realize that stocks do not have much left to offer.
It’s no secret that gold prices have been on the defensive in recent months, and the market is probing fresh lows. The combination of a potential stock collapse, global slowdown, recession and lower gold prices could make right now the ideal time to build a significant allocation in this critical asset class.
All you have to do is pick up the phone.
Speak with an Advantage Gold account executive today about the numerous potential benefits of gold ownership. An AG associate can walk you through the process and answer any questions you may have. They will even show you how simple it is to add this important asset class using an IRA account.
Don’t wait for the next major asset reallocation to erase billions in investor wealth before acting. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.
Tags: advantage gold, copper, gold, guggenheim, stock market crash, turkey