There has been no shortage of issues for global financial markets to grapple with over the last several months. Not only does the U.S. has numerous domestic challenges to deal with, the country is also involved in some high-stakes disagreements on the international stage and will need to closely monitor others. The geopolitical landscape could get worse. A lot worse.
Here are three major issues that have the potential to hit global financial markets hard and fuel a significant flight to safety:
North Korean Nuclear Ambitions:
The threat posed by North Korea is nothing new. The country has repeatedly ignored calls for ending its nuclear program and has even test-fired missiles near Japan. After significant back-and-forth with U.S. President Donald Trump, North Korean leader Kim Jong Un recently sat down with Trump at a summit in Vietnam. Unfortunately, it appears the meeting ended abruptly with little to no progress being made. Without a lifting of U.S. sanctions against the country, the north may look to continue its nuclear program despite warnings of economic or even military action.
China Trade Relations:
The ongoing U.S./Chinese war over trade has already begun to hit manufacturers and the economies of both countries. Although some progress has been reported in recent talks, leaders from the globe’s first and second-largest economies have yet to sit down and sign a deal. If a deal is not reached in the weeks ahead, the situation could begin to rapidly deteriorate with additional tariffs being slapped on the goods of both countries. The trade war could potentially have significant consequences for the global economy as well, and any further destabilization could begin to fuel risk aversion across global markets.
India and Pakistan:
Tensions between India and Pakistan grew this week as India bombed what was reported to be a terrorist camp in Pakistan while Pakistan retaliated by shooting down two Indian aircraft. These two countries are locked in the worst crisis in years over border disputes and other issues. With strong nationalist sentiment and an upcoming election in India, political pressure may make it challenging to find a way to defuse the situation. Although the U.S. is not currently involved, it could potentially be forced into the quarrel as both countries have nuclear weapons and any further escalation puts the entire region at risk.
With the potential for even more geopolitical fireworks against a backdrop of a slowing global economy, now may be the ideal time to add diversification in alternative asset classes. Given the potential for a stock market collapse, increasing inflation, a weaker dollar, and economic recession, there may be no better asset class to turn to than physical gold.
Adding physical gold to your portfolio has never been easier and perhaps never more important. This asset class may not only see significant upside price appreciation but may also potentially provide an effective hedge against a weaker dollar, higher inflation, and geopolitical risks.
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 key asset class using an IRA account.
Don’t wait for the next major geopolitical powder keg to explode or for the next recession to fuel massive stock market declines before acting. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.