In early action on Wednesday, the stock market is getting hit once again, and hit hard.
Rising bond yields remain the object of blame for today’s sell-off, and the market is showing some significant signs of cracking. The selling seen last week and thus far today could simply prove to be a small taste of the potential carnage ahead.
Higher yields are creating competition for stocks, which have enjoyed a significant, decade-long run due in no small part to a lack of viable alternatives.
Given the current backdrop of rising yields, higher inflation, geopolitical turmoil and other factors, the markets could now be at an important tipping point. This tipping point could potentially be the early stages of the next bear market in equities and could also see yields continue to march higher.
It’s no secret that the bull market in stocks is getting older by the day and that the current economic expansion has quite possibly run its course. It may now simply be a matter of lighting the fuse that leads to a significant amount of bearish tinder.
The November midterm elections are also quickly approaching, and with them will come a large amount of uncertainty. If democrats are able to take the House, and possibly even the Senate, it may become increasingly difficult for the Trump administration to implement its agenda. Such a scenario would likely add fuel to the fire, and stock investors could see a decline in equities that has the potential to erase much of, if not all of, the gains seen in recent years.
Once the markets have shown their hands, a flood of capital is likely going to be looking for new places to work. One of the asset classes that could stand to benefit significantly is gold.
The gold market has been in a consolidation phase that has seen prices cling to the $1200 level. With the selling pressure having run its course, the market may be getting ready for a massive rally that could be just the beginning of a protracted bull market. The question is: Would you rather buy gold at $1200 or $1500, or even $2500?
The gold market not only has significant upside price potential, but it may also serve other important purposes in the current environment. It may potentially provide a hedge against rising inflation, and may also preserve purchasing power if the dollar resumes its long-term downtrend. Gold has a reputation as a safe haven, and when enough investors have seen stock market gains evaporate they may very well turn to the yellow metal.
That is why the time to get into the market is now. Doing so 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 have, and can even show you how simple it is to build a significant allocation in this key asset class using your IRA account.
The next bear market in stocks is not far off. Now is the time to explore other options. Now is the time to consider a significant allocation in physical gold. Don’t delay. Pick up the phone and call Advantage Gold today at 1-800-341-8584 to get started now.Tags: advantage gold, bull market, gold, higher yields, inflation, midterm eletions, stock market collapse