Stocks have again found their winning ways in recent weeks but it’s likely all a classic bull trap… After a rough end to 2018, the markets have been moving higher even as a U.S./China trade deal remains elusive. The benchmark S&P 500 is once again challenging resistance around the 2800 level, and some investors are hopeful that the market will stage an upside breakout and embark on a fresh leg higher into a new all-time high territory.
However, investors may be very disappointed if the market cannot break through current levels. And why should they? Perhaps the potential for a trade deal with China is fueling some optimism, but it may prove to be another case of “buy-the-rumor-sell-the-fact.” Stock investors have been sucked into the market again, and those who are late to the party will be the ones without a chair once the music stops.
The bigger picture may not be constructive for stocks either. The global economy is slowing down, interest rates have been on the rise and the tailwinds of tax cuts and government spending are clearly beginning to fade fast. Corporate profits have been at or near record highs, but without further stimulus are likely to recede.
In other words, one could argue that stocks at current levels simply don’t provide investors with a risk/reward scenario that make sense. Not only that, but a significant decline in stocks could catch many investors off-guard, forcing them to try to hold on during the next phase of the bear market.
While the stock market is setting up a classic bull trap, investors now have a choice: Stay in stocks and hope for the best or take steps now to insulate their portf0lios from the next equity collapse and economic downturn. A significant asset reallocation has already gotten started, and once stock markets crack the stampede into alternatives will be on. That makes now the ideal time to add diversity with asset classes that may potentially outperform during the next major stock bear market.
Against the current economic and geopolitical backdrop, there may be no better asset class to turn to than gold. This asset class, considered by many to be the only true form of money, may present an excellent long-term value at current price levels. Not only does it have tremendous upside potential, but it may also protect your wealth and purchasing power as the dollar declines further.
Don’t get sucked into the stock bull trap. With or without a trade deal, the bull market is likely to reverse course and to do so in spectacular fashion. The time to take action is now.
Adding gold to your portfolio has never been easier and never more important. 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 build a significant allocation in this key asset class using an IRA account.
Don’t wait for the next major stock market meltdown to wipe out billions in investor value. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.Tags: add gold to my ira, advantage gold, best way to buy gold, bull market, bull trap, buy gold, china trade deal, global economy, gold ira, long-term value, s&p 500, stock market collapse, take action now