Stocks have remained amazingly resilient in recent months, and the current rally in the S&P500 is now the longest on record. Make no mistake, however, the party will not likely go on indefinitely. Indeed, there are numerous issues currently at play that could cause a massive drop in equity markets while sparking what could be the greatest increase in volatility of all-time.
Although gold has been on the defensive in recent months, its weakness is likely in direct correlation to higher stocks and increasing economic strength. It stands to reason, therefore, that once the tables have turned and the next major stock collapse and/or recession hits, the yellow metal could potentially return to or even exceed previous all-time highs. When it comes to things worth considering, here is the shortlist:
Global Trade: The ongoing war over trade could begin to take a significantly more aggressive turn, and consumers could feel the pinch from higher prices.
Mid-term Elections: Regardless of what side of the aisle you may lean towards, a big shakeup in November could have a significant impact on the economy and equity markets.
Rising Rates: The Fed has continued its process of normalizing monetary policy, and the central bank is set to hike rates higher again next month.
Rising Inflation: Inflation is on the rise, and higher prices can take a bite out of disposable incomes and put the brakes on economic activity.
Aging Expansion: The current economic expansion is likely getting long in the tooth, and there have already been some signs of slowing in housing and manufacturing.
Dollar Reversal: Although the dollar has been moving higher for some time, the long-term outlook for the currency has not changed and a major top/reversal could be seen in the currency this year.
Geopolitics: North Korean nuclear ambitions, Iranian tensions, ongoing military conflicts and other issues could potentially flare up and fuel risk aversion.
The bottom line is this: There are many factors that have the potential to fuel the next major stock market collapse, and the next major recession could be seen sooner rather than later.
That is why now, right now, may be the ideal time to begin reallocating assets and adding diversification. What better asset class to use than gold?
With prices almost 50% off from all-time highs, gold could potentially offer a tremendous value at current levels. This value could be comparable, or even exceed, the value seen when stocks bottomed out nearly a decade ago. Unlike stocks, however, gold can potentially provide numerous other benefits as well, including acting as a hedge against rising inflation or a weaker dollar.
Adding gold to your portfolio has never been easier. Pick up the phone and speak with an Advantage Gold account executive today. Our associates are here to answer any questions you may have, and can even show you how easy it is to use the power of an IRA account to build a significant allocation in gold.
Don’t wait for the next major stock market collapse or recession before acting. It is not a question of “if,” but simply of “when.” Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.Tags: advantage gold, aging expansion, bull run, dollar reversal, elections, gold, rising interest rates