A Happy New Year Is Too Much To Hope For With This Stock Market!

As usual, Holiday ether may carry the stock market through the end of the year. But there is absolutely nothing positive of a substantive nature for the market to hope for, once the new year starts. The Fed increasing interest rates a fourth time this year could be the straw that finally breaks the back of this oversold and long-in-the-tooth bull market. Nevertheless, whether they do or whether they don’t, neither direction will “help” the stock market in any way. The dollar will continue to shine for a while, but only because it’s metaphorically the smartest kid in a class full of morons. Consternation with Brexit, Greece and Italy has lanced the soft underbelly of the EU and its currency. However, China, the International Monetary Fund, and a myriad of other countries fed up with U.S. sanctions and pontification are all factors that can lead to a reduction or outright replacement of the dollar as the premier global reserve currency.

Meanwhile, a “stronger” dollar and declining crude oil prices are continuing to hold down precious metal prices. But another interest rate increase this year could be detrimental for the stock market, while growing global financial volatility indicates a weakening global economic activity and domestic production will be lower next year as stimulus effects from this year’s tax cuts wear off. As the new year progresses, investors will quickly realize the danger of today’s extremely high  risk appetite, in the light of flattening yield curves and tightening global credit and liquidity.

A great number of variables remain, but the coming economic slowdown all but insures a re-evaluation of Fed policy, interest rate expectations, and dollar strength. If markets begin to anticipate a slower implementation of planned interest rate hikes, precious metal prices will indeed benefit. In addition, signs of inflation will put investors on notice to dangers for the economy, the dollar, and the stock market. Meanwhile, precious metals will see an increase in demand for safe haven purposes.

As I mentioned, another interest rate hike could force the issue, but if the stock market manages to muddle through the end of the year without a major downturn, then  the first quarter will prove to be very volatile, very dangerous, and a difficult time for those who wait too long to take necessary defensive action. Call American Bullion now for assistance avoiding potential losses. Call (800) 653- GOLD (4653) to enlist the professional services of the Gold IRA pioneers at American Bullion. Don’t wait for the bandwagon or it could be too late. But no matter what, don’t get caught without a chair when the music stops. Call Now!