The highly anticipated jobs report for August showed the U.S. added just 130,000 jobs, a significant downside miss from expectations for 150,000 new jobs added. The unemployment rate was steady at 3.7 percent. This figure looks especially weak compared to the ADP employment report released earlier in the week, which showed a gain of 195,000 jobs when market expectations were looking for 140,000 jobs. The jobs data falls into the camp of the policy doves who want to see further rate cuts.
The Fed will almost certainly cut rates by another 25-basis points when it meets this month and could potentially lay out a path for additional cuts before the end of the year.
Also factoring into the equation will be the ongoing U.S./China trade war. The war on trade has seen further escalation in recent months, and both sides appear to have their heals dug in deep. This week, it was announced that further talks are set for October, and the news sent stocks sharply higher. This is nothing new, however, and until some type of concrete progress is made, markets could remain on track to bouts of heightened volatility.
With or without a deal on trade, the wheels for the next major recession have likely already been set into motion. The key manufacturing sector is showing some clear signs of weakness, and now hiring appears to be slowing down. The only thing that may keep markets afloat for much longer is massive stimulus measures. The trend of ultra-low rates and QE looks set to continue, but it may be only a matter of time before the rug is swept out from the market’s feet.
Against the current backdrop of economic and geopolitical risks, now may be the ideal time to diversify with alternative asset classes. With the potential for lower rates and massive money printing, there may be no better asset class to look to than physical gold.
Gold not only has significant and unlimited upside potential, but it may also provide a key hedge against rising inflation, a weaker dollar and lower stocks. Just as the aging stock bull market appears to be coming to a conclusion, the next major cyclical bull market in gold may be just getting started. Adding this key asset class to your portfolio has never been more important and it’s never been more convenient. As market dynamics continue to shift and as sovereign debt levels become even more unsustainable, the metal’s importance could increase exponentially.
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 using an IRA account.
Don’t wait for the next major stock market collapse or for gold to start making fresh all-time highs before acting. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.Tags: alternative asset, china, heightened volatility, money printing, next recession, stimulus measures, trade war, ultra-low rates