The U.S. election for President occurred a year ago this week. An army of economic analysts proclaimed that if Trump were to be elected President, the stock market would go into shock and collapse. At this point, it’s pretty clear to see that these trained analysts might be better equipped to simply report, rather than attempt to prognosticate, because investors certainly had a different opinion on the matter. That’s not at all to say that the analysts were wrong. Numbers don’t lie and speaking from a purely statistical and economic viewpoint, the numbers said the market was due for a sizeable correction. But instead, the stock market has almost consistently posted new highs. A year into the new Trump reality, the stock market has posted a gain of almost 30%.
What analysts failed to factor into the equation was the deep seated desire of U. S. investors to free up the market, grow the economy, and “make America great again.” Market excitement and enthusiasm has been the driving force, particularly in the later stages of this bull market, just like it has been preceding every market collapse throughout American history. As the saying goes, the road to hell is paved with good intentions. But the Fed’s monetary policies have eliminated a great majority of typical investment diversification tools and the misuse of cheap Fed money by greedy executives of public companies has disemboweled the opportunity of those companies to legitimately grow and prosper, leaving only an over-valued and under-achieving stock market as a means for potential growth.
During the year, treasury bonds have flatlined, interest rates have risen ever so slightly, and inflation has consistently fallen short of expectations, again due to a complete mishandling on the part of the Fed. And the installation of Powell at the helm in February will insure more of the same. The Fed has created bubbles in the stock market, real estate market, and done everything in their power to keep precious metal prices low. But when the artificial euphoria of the transition wears off, investors are sure to realize that in spite of Fed efforts, precious metals are poised to skyrocket and the cryptocurrency market they despise will begin to fill the alternative investment diversification void they’ve created.
In summary, the past year has created an economic bubble of dangerous proportions. Misguided monetary policies have forced investors into an over-heated and criminally mishandled stock market that now finds itself in need of a massive correction. Instead of receiving lavish retirements at Club Med, the executives responsible for the coming stock market collapse should be retiring with Bernie Madoff at Club Fed. At any rate, investors should realize that precious metals offer the one proven method to avoid or at the very least offset the horrific losses that are coming soon to our bull stock market. Perhaps it can squeeze out another 10%, but is it really worth the risk? Don’t get caught without a seat when the music stops! Secure your financial legacy now! Call American Bullion today at (800) 465-3472.
Although the information in this commentary has been obtained from sources believed to be reliable, American Bullion does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice. American Bullion will not be liable for any errors or omissions in this information nor for the availability of this information. All content provided on this blog is for informational purposes only and should not be used to make buy or sell decisions for any type of precious metals.