The stock market has seen a major volatility expansion in recent weeks as declines have mounted. The equity markets are currently grappling with numerous issues that could not only set the stage for the next bear market but could also send stocks decidedly lower in a short period of time.
Some of the major catalysts for recent stock selling include the ongoing trade war with China, rising interest rates, geopolitical risks and a partial government shutdown. Investors may now be wondering, however, if they must also consider the possibility of a liquidity crunch.
Last weekend, Treasury Secretary Steve Mnuchin had calls with CEOs from the nation’s six largest banks. The nature of these calls was reportedly to discuss their capital positions and operations. Although the announcement of these calls was intended to put investors’ fears at ease, it ended up having the opposite effect. Markets plunged on Monday to mark the worst Christmas Eve showing on record.
Stocks are bouncing back on Wednesday as investors try to digest recent developments and what they might mean. Any sharp rally-whether it is for a single day or for a few weeks-is likely to be sold into. Large market players may simply use any upside to distribute more stocks to smaller market participants. This would seemingly make sense as there are a great number of issues currently being seen in the global economy and financial markets that are not likely to be resolved any time soon.
A significant shift in market dynamics has already gotten started. Stocks have been unable to maintain any upside momentum and investors have already begin seeking out alternatives.
Given the current economic and geopolitical backdrop, investors are increasingly likely to seek out alternative asset classes and may look for perceived safe-havens. Looking at recent price action in the gold market, you will conclude that this is already happening in the marketplace.
The gold market recently broke through key upside resistance at the October highs around $1252 and appears poised for further gains. As stock investors may now look to sell into rallies, gold investors may look to buy dips aggressively. Recent price action would seem to suggest that the next major, cyclical bull market could be getting started in gold as stocks are seemingly embarking on the next protracted bear market.
The move in gold could be in the very early stages, and it is not too late to get into the market. Adding gold to your portfolio has never been easier than now, and this key asset class may provide numerous potential benefits. Not only does gold have enormous upside potential, but it may also act as an important hedge against accelerating inflation and geopolitical risks as well as a weaker dollar.
Speak with an Advantage Gold account executive today about how this key asset class may play an important role in the years and decades ahead. Our account executives are here to answer any questions you may have and can even show you how easy it is to add this key asset class to your IRA account.
Don’t wait for further stock market declines or for a weaker dollar to erode your holdings. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.Tags: advantage gold, china, gold, government shutdown, mnuchin, rising interest rates, treasury