Five days into the Donald Trump Presidency, the Dow is flirting with the 20,000 level, gold is near two month highs and the dollar remains well off of its post-election highs.
Although the “Trump” rally has slowed in recent days, it may simply be a case of investors taking a wait-and-see approach. Thus far, Trump has signed orders to proceed with a major oil pipeline and pulled the U.S. out of a Pacific trade group. It has been reported that Trump will sign executive orders on Wednesday regarding immigration.
The data stream continues to be somewhat of a mixed bag, and investors are still awaiting further details about Trump’s fiscal spending plan.
Gold remains on the offensive even as stocks and risk assets remain not far from recent highs. The fact that gold continues its recent ascent would seemingly indicate that there is still a degree of risk aversion within the marketplace.
Could this be the calm before the storm? Could the Dow hitting 20,000 potentially mark a major top in equities?
Although we cannot see the future of markets any better than you can, there do appear to be some compelling reasons that a major sell-off in stocks could potentially be seen. An erosion of U.S./China relations or the possibility of a trade war could potentially be a major catalyst for stock selling and risk aversion.
A smaller fiscal spending plan than markets are hoping could also put a dent into sentiment.
Ongoing protests in the U.S. or a further divide of the nation could also potentially take a toll.
In other words, there seems to be plenty of reasons to be somewhat cautious right now if not downright fearful.
Precious metals like gold and silver have been considered a reliable store of value and protector of wealth for thousands of years. These metals are often bought during times of economic or geopolitical tension. Are rising gold and silver prices indicative of economic or geopolitical trouble ahead?
Maybe yes, maybe no.
Fortunately, these metals can potentially serve a purpose within your portfolio whether stocks are rising or falling and in both good economic times and bad.
Although prices of gold and silver may fluctuate, in our view the long-term road looks higher for these metals. Not only that, but physical precious metals can potentially provide a meaningful hedge against a number of economic issues such as inflation, deflation, declining currency values and more.
If you don’t already own physical gold or silver, now may be the time to consider adding an allocation. Doing so has never been easier.
Speak with an Advantage Gold account executive today about the potential benefits of physical gold and silver ownership. Our precious metals professionals are here to answer your questions, and can even show you how to use your IRA account to begin building a precious metals portfolio.
Don’t wait for the next market crash or economic downturn before exploring your options. Learn more about physical gold and silver ownership today. Call us at 1-800-341-8584 to get started.Tags: advantage gold, equity rally, fiscal policy, gold, oil pipeline, trade war, trump rally