With the Labor Day Holiday weekend now in the rear-view mirror, investors will likely look to get back down to business as the month of September gets under way. With increasing trade volumes may also come an increase in market volatility. Investors appear to have gotten quite complacent in recent months as stocks have treaded water not far from previous all-time highs. This complacency, however, could lead to a significant market decline if a bearish catalyst gets the ball rolling.
A primary area of concern has to be the ongoing war over trade. Late last week, President Trump announced a plan for another $200 billion in tariffs on Chinese goods. The news fueled some moderate selling in stocks, and equities are lower once again on Tuesday over fears of further escalation. There is no telling just how far both sides are willing to go, and eventually the current tit-for-tat positioning on trade could hit consumers.
Thus far, it seems that the majority of safe haven inflows have gone into the dollar. The dollar has gained significant ground in recent months, and is likely the primary factor in gold’s recent lack of upside. The current rally in the dollar could be approaching a top, however, as eventually the weight of significant debt and other factors take a toll. Not only that, but the Fed appears to have taken a step back from its recent hawkish tone, and the central bank could end up hiking rates much slower than previously expected.
Although calling a top or a bottom is very difficult, if not impossible, the bigger picture could already be pointing to an eventual top in both stocks and the dollar. Once the current paradigm shifts away from stocks and the greenback, the gold market could potentially see significant inflows and sharply higher prices. It is not a question of “if” but rather “when.”
With so many indicators flashing warning signals currently, now may be the ideal time to prepare your portfolio for the next major wave of volatility and selling. Stocks have seen crashes before in the order of 50%, and this time around may be no different.
Gold could be the ideal asset class to build a significant allocation in right now before the next major recession takes hold. In addition to significant upside price appreciation potential, gold may also provide a hedge against rising inflation and a weaker dollar. Adding this key asset class to your portfolio has never been easier.
Speak with an Advantage Gold account executive today about the potential benefits of physical gold. Our associates are here to answer any questions you may have, and can even show you how to take advantage of an IRA account to build a significant allocation.
Don’t wait for the next major stock collapse or for a new bull market in gold to get started before acting. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.Tags: advantage gold, china, dollar index, gold, safe haven inflows, tariffs, trump