Stocks continue to show signs of strength, and market volatility remains quite low. Investors seem quite confident in the market and the economy, and appetite for risk remains robust. Given the relative calm that has been seen for some time now, many investors are likely growing too comfortable in the market’s ability to keep moving higher.
It is times just like this when the market could decide to deliver a jolt to overly optimistic investors. Now is not the time to be complacent.
Although the economy is still showing signs of growth and stocks have continued their ascent, there are numerous key issues lurking behind the curtain that could bring the market back down to earth. The geopolitical landscape, in particular, is fraught with potential landmines that have the potential to do some major damage to risk assets.
This week, President Trump has already met with the G7 over the weekend, and is now getting ready for Tuesday’s meeting with North Korean leader Kim Jong-Un in Singapore. This meeting could be extremely significant, and could dictate the path of U.S. and North Korean relations for some time to come. At the center of the meeting discussions will be the North’s nuclear ambitions.
If President Trump is able to persuade the nation to denuclearize, it could greatly improve relations with the country and lead to the lifting of sanctions. On the other hand, if Kim Jong-Un is not serious about dismantling the country’s nuclear arsenal, the situation could deteriorate further and could potentially lead to further sanctions or even a military conflict.
In addition to the ongoing conflict with North Korea, global markets will also be watching the unfolding situation in Italy. The EU has continued to have some significant sovereign debt issues and Italy is the region’s largest debtor nation. Anti-establishment parties in Italy have been gaining momentum that could potentially lead to victory in elections to be held later in the year.
If Italy were to decide to exit the EU or the region’s shared currency, it would be yet another sign of the turmoil in the region that could eventually lead to its demise. Needless to say, concerns over the health of the EU could weigh heavily on global financial markets, potentially fueling panic and even bank runs.
With so many potentially significant issues being seen around the globe, now is not only the time to avoid becoming complacent, but is also the time to make sure your portfolio is well-diversified and has a significant allocation in assets that may potentially increase in value while also providing a hedge against inflation and geopolitical risks.
In other words, now may be the ideal time to build a significant allocation in physical gold.
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 gold ownership. Our associates are here to answer any questions you may have, and can even show you how to buy and hold this key asset class using your IRA account.
Don’t wait for the next major stock market crash or geopolitical crisis before taking action. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.Tags: advantage gold, debtor nation, g7, gold, italy, kim, north korea, singapore, trump