The markets have seen increasing volatility in recent weeks as rates move higher and as stocks decline. Recent market volatility could, however, be just a drop in the bucket of what could be seen as the New Year gets underway. Investors have numerous issues to contend with and a great deal of uncertainty about what the Fed may or may not do with monetary policy.
The potential for an ongoing trade war with China, the ongoing issues in U.S. politics, Brexit and more could all keep markets on their toes in the months ahead. In fact, there are numerous potential wildcards that could send stocks and risk assets sharply lower in a very short period of time. Not only that, but the global economy is showing some significant signs of slowing and the aging bull market in stocks is getting grayer by the day.
Against the current economic and geopolitical backdrop, stocks, interest rates and other markets could see substantial movement. Some analysts have suggested that stocks could be embarking on a period of massive price swings, with 5 to 10% swings becoming “normal.” The same could be said for interest rates, which have seen the benchmark 10-year note yield climb well-above the 3% yield level only to come back down again. With the Fed seemingly taking a wait-and-see approach towards policy, yields could see sharp swings as well.
These scenarios could potentially make gold the ultimate safe-haven asset in the months and years ahead. The market has traded in a fairly small range for some time now, and appears to be gearing up for a significant upside breakout. Its recent stability may become increasingly appealing to investors looking to dodge what could be historical volatility on the horizon.
Not only can this key asset class potentially provide stability, but it also comes with significant upside appreciation potential. The gold market could potentially see a swift move higher of $100, $200, even $500 per-ounce or more if things continue on their current course or if the next major recession takes hold. This key asset class may also potentially provide an important hedge against accelerating inflation, a weaker dollar and geopolitical risks.
The market is currently aiming to take out key resistance at the October highs and once it does it could be off to the races. With so much potential upside, however, and so many other reasons to own a significant allocation in this key asset class, it is never too late to get started. If you would prefer to buy at lower price levels and get the best value for your capital, however, now may be the ideal time to get started. 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 may have and can even show you how easy it is to build a significant allocation in this important asset class using your IRA account.
Don’t wait for the next major wave of selling to hit stocks hard or for the gold market to take off without you. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.Tags: advantage gold, brexit, gold, interest rates, market volatility, safe haven, trade war