Chinese officials seem to agree: the situation is getting worse. If we start trading more harsh words with China than we trade actual goods, that could spell recession for America.
China’s Commerce Ministry is complaining that the U.S. is “launching the largest trade war in economic history to date.”
Scott Minerd, one of the world’s preeminent bond strategists and fund managers, thinks investors are unwise to ignore this clear red flag for the market.
“Markets are crazy to ignore the risks and consequences of a trade war,” said Minerd. “This rally in stocks is the last hurrah.”
As chief investment officer for Guggenheim Partners, he fears average investors have been lulled into a false sense of security… at their potential peril.
Now that trade war with China has begun, Minerd believes the situation could quickly spiral into a sharp downturn for the market.
YIELD CURVE SHOWS BAD OMEN: RECESSION AHEAD
The proof of Minerd’s forecast, according to MarketWatch, is the flattening of the yield curve that we are seeing today.
MarketWatch described this effect as a “bad omen for Wall Street,” saying it means that investors believe that an economic slowdown is coming soon.
How powerful is this market signal? Very powerful.
Every single one of the last seven recessions has been preceded by an inversion of the yield curve. Every single one.
Are you ready to gamble your family’s future on the likelihood that this time will be any different?
MarketWatch says “average investors may be underestimating the potential for a protracted China-U.S. spat to deliver a more significant role to the domestic economy.”
Morgan Stanley Wealth Management has been sounding the warning bell as well. They believe other analysts are ignoring the extent of the current market risk level, especially with a nasty trade war coming fast.
Minerd recently issued an additional warning about inflation, saying that the current state of full employment is sure to slam us all with higher prices for everyday items soon. If it does, he believes the Federal Reserve will act by raising rates too fast for over-indebted consumers to stomach.
With this kind of potential financial calamity on the horizon, it isn’t surprising that Minerd believes “investors should sell now.”
Does that sound like a sensible course, or are you more optimistic?
We meet investors of all viewpoints every day. Luckily, gold and silver coins and bars appeal to people of all kinds, because everybody needs to diversify for safety.
We don’t lay claim to any crystal ball here at the Hartford Gold Group. However, you don’t need to be a fortune teller to know that eventually this bull market will end, and it might be soon.
TD SECURITIES CALLS FOR $1,300/OZ GOLD IN 2018
Research powerhouse TD Securities has been keeping a close eye on a host of economic indicators. This week, their conclusion is… higher gold is ahead.
“Indeed, we would not be surprised to see the yellow metal move into $1,300/oz in the final three months of 2018,” wrote Bart Melek, TD Securities head of global strategy, this week.
Why? Here’s the quick rundown:
1.Rising inflation data is becoming harder to ignore
2. The U.S. dollar rally is close to an end
3. Current U.S. growth is slowing
4. Lower yields on the long end of the yield curve
5. European Central Bank is close to raising rates
6. Emerging market currencies are getting stronger
All of these factors point to a short and swift move in gold, according to Melek.
TD Securities is not alone in their buoyant forecast for the yellow metal. Bank of America Merrill Lynch has just reiterated their $1400/oz call for gold in 2018 and $17.50/oz for silver as well.
Why? The usual suspects: spiraling geopolitical tensions, increasingly nasty global trade wars and inexorably rising inflation.
WHAT IS YOUR RECESSION-BUSTING STRATEGY
Have you considered what a little diversification in your retirement assets might mean for your peace of mind? Not to mention your quality of sleep at night.
What sort of legacy will you leave for your family?
It is never too soon to consider…
What is my down-market strategy?
Am I prepared for “the worst” (or even the “slightly painful”) kinds of markets that lie ahead?
Have I diversified adequately into safe-haven assets like gold and silver coins?
Says Forbes, “Lower volatility is tantamount to lower risk.” There’s no clearer case for considering gold than this simple statement.
Don’t let your retirement plan get seriously out of balance!
It isn’t too late, but you should act soon. You need to know to make a good decision about gold or opening a gold IRA.