Today, the Institute for Supply Management reported that its manufacturing purchasing managers index fell in February to the lowest level since November 2016. Not coincidentally, it is not the only economic indicator to decline to the lowest levels since that time. Could this mean more symptoms of economic trouble?
Of course, November 2016 was when Donald J. Trump was elected President in a victory that caught many off-guard. Since he has been in office, Trump has enacted significant legislation. His administration has performed significant deregulation, cut taxes and put into place a pro-growth and pro-business environment. Since Trump took office, equity markets have been moving sharply higher as corporate profits have been on the rise and stocks remain near all-time record highs.
The last few months, however, have seen some cracks appearing in both the U.S. and global economies. Key data points have also begun to weaken, with such areas as consumer confidence, retail sales, manufacturing, housing starts, factory orders and more all showing a slowdown.
Although it may be too early to call a top in the economy, some have started to question the so-called “Trump bump” is beginning to fade. Trump has had to fight numerous battles to get the markets and economy to where they are today and has done so despite rising interest rates, a trade war with China and other factors that could potentially weigh on output.
Despite the administration’s efforts and pro-growth policies, the economy will eventually slow even further. The U.S. is due for a recession any way you slice it, and a sharp economic slowdown could be seen this year, next year or in the next two years. Fortunately, investors are being provided with plenty of clues that economic trouble is headed their way and have time to act accordingly if they choose to do so.
With so many areas pointing to a further slowdown, now may be the ideal time to take action. As the equity bull market continues to age, it is likely only a matter of time before the entire house of cards comes crashing down on investors. Adding diversity now, however, may allow some investors to ride out the next recession largely or completely unscathed.
Alternative asset classes such as physical gold may provide investors with significant opportunity given the current economic and geopolitical backdrop. Gold not only has significant upside price potential but may also act as an important hedge against higher inflation, a weaker dollar, and geopolitical risks.
The next major bull market in gold appears to be getting started, but it is not too late to get involved. 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 build a significant allocation in this key asset class using your IRA account.
Don’t wait for the next sign of economic trouble, or even worse for the next recession to take hold and for an equity market 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, best gold companies, best way to buy gold, best way to invest in gold, deregulation, economic indicator, economy, recession, trump, weaker dollar