The Two-Term Jinx: Recession 2017

In my last blog posting, I wrote about why you need market knowledge to invest in a stock or commodity on its way down. No investor wants to chase a loss. To make sure you’re not doing that, you need to have reliable information. By that, I mean information to show you’d be investing before that stock or commodity turns around. Or else, you’ll be sending your personal wealth down a rabbit hole.
 
Let’s face it. No matter how much reliable information you have, you’ll still need an ounce of courage. It’s easy to follow the crowd while a stock or commodity is climbing. Yes, easy. But it’s also foolish.
 
The more difficult thing to do is to grab a stock or commodity just before it turns around.
 

The good news is gold investors have it much easier than stock-market investors. They don’t have to monitor their investment on a company-by-company basis. They have much less technical and fundamental data to worry about.
 
The writing on the wall about the global economy, then, is much more clear and distinct.
 
Just today, October 14, 2016, HSBC precious metals analyst Jim Steel has issued a report indicating gold prices will rise soon. As he sees it, reduced globalization is a natural invitation for the price of the yellow metal to climb. I’ve discussed this scenario in a previous blog.
 
Protectionist policies –policies that inhibit international trade through punitive tariffs –routinely set the stage for a shrinking global economy. Recently U.S. Treasury Secretary Jack Lew argued in favor of enhanced trade activity and wider-spread distribution of the rewards of economic growth.
 
We live in one world. The prosperity of the U.S. depends on expanded international trade. But Steel has a somber take on the global economy and, therefore, a positive take on gold’s upside. The World Trade Organization (WTO) has revised its forecast for global trade from 2.8% to 1.7%.
 
As a result, investors will flock to gold for a safe haven. Steel anticipates a price of $1,400 per ounce in the near future.
 
Also, economist Raoul Pal is betting on higher gold prices because of uncertainty surrounding the possibility of a Fed rate hike.
 
Pal’s core presumption — one he’s held since 2014 — is bad news for the U. S: He is convinced the country is headed for recession within a year. “The business cycle points to that,” he said, “and 100% of all two-term elections have had a recession within 12 months since 1910.”
 
Doesn’t it make sense to heed some of these market signals and protect your nest egg? Now that gold is hovering just above the $1,250 level, why not pick up some just before it skyrockets?
 
For more information, call 800-777-6177 now, and ask to speak to a Fortress Gold Group representative.

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