Love him or hate him, President Trump has accomplished a great deal in his first two years in office. Stocks are near record highs, unemployment is near a 50-year low and the economy is seeing real growth.
Trump, who has never been one to shy away from voicing his opinions, and he recently tweeted:
‘Had the opposition party (no, not the Media) won the election, the Stock Market would be down at least 10,000 points by now. We are heading up, up, up!’
– President Donald Trump
And who is to say that is he is not right? Although Trump did not specify which market he was referring to, he likely was referring to the benchmark Dow Jones Industrial Average. According to MarketWatch, a 10,000 point decline following the November 2016 election would have seen the index decline to about 8,259. To put this into perspective, the gauge is trading today at almost 25,874 in early action. Put another way, the stock market could potentially have been worth only one-third of what it is today.
This would seem to suggest two things: First, the Trump administration has done several things that have boosted the economy and corporate profits. Second, markets could potentially see significant downside when the Trump Presidency comes to an end.
There could be more gains ahead for stock investors. The current climate of deregulation, economic growth, and full employment may all potentially lead to higher asset prices. On the other hand, however, Trump has now found himself having to fight an increasingly-hawkish Fed and higher interest rates. With less than two years remaining in his first term, Trump could potentially do a lot more great things and send markets even higher in the process. If reelected, he could also set the stage for further upside in the years ahead.
There will be challenges, however, and further upside in equities is by no means a foregone conclusion. Government debt, higher interest rates and a shrinking Fed balance sheet could all spoil the party. Of course, there is also the risk that Trump is not reelected in 2020. Such a scenario could set the stage for a massive equity sell-off that could be historical in nature.
Regardless of whether Trump is reelected or not, the bull market for stocks is likely far closer to the end. Stocks could potentially see significant declines of 30%, 40%, even 50% or more. If such a sell-off eventually unfolds, the damage done to unwitting investors could be catastrophic. It is not a question of “if,” but rather “when.”
That is why now may be the ideal time to add diversity with alternative asset classes that show little correlation to traditional stocks and bonds. Given the current economic and geopolitical backdrop, along with rising debt and a weaker dollar, there may be no better asset class to turn to than physical gold.
Adding gold to your portfolio has never been easier, and perhaps never more important. Speak with an Advantage Gold account executive today about the potential benefits of gold ownership and to learn more about the role this asset class may play in a portfolio. Our associates are here to answer any questions you may have and can even show you how to use the power of an IRA to build a significant allocation in this key asset class.
Don’t wait for the next major equity collapse to wipe out billions in investor value before acting. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.Tags: add gold to my ira, advantage gold, alternative asset classes, diversify your assets, equity collapse, Fed, government debt, rising debt, stock market, trump, trump administration, weaker dollar