Friday and yesterday’s stock market losses were a long-overdue correction at the very least and out of the gate this morning the market will have you believe that’s exactly what it was, a correction and nothing more. With the Dow up more than two-hundred points already this morning, investors are eager to get back on that raging bull and ride. But what is the reason for this invincible market attitude? Many investors (Democrats in particular), felt that Trump’s election would be a poison pill for the market, but the market continued to rise. Domestic political unrest has continued unabated since the election and yet the market has continued to rise. With the first serious market correction in years under our belt, what cause for hope remains that the market can cling to and build upon?
The attitude of the American public seems to be positive, in spite of the fact that most macro-economic conditions are negative. There is a positive feeling reflected in consumer confidence, a continuing reduction of unemployment numbers, and tax reform passage. All of these factors offer support to the American investor’s “positive attitude.” But at some point, now or later, the negative global macro-economic factors have to be taken into account. These conditions include, but are not limited to, a global malaise of economic growth, growing geo-political discontent, and the weakly publicized news that China has more than twenty countries trading oil for Yuan/gold and the Saudi purchase of Russia’s S-400 missile system.
Many of today’s American investors do not remember the 1974 deal with King Faisal of Saudi Arabia, which led to the U.S. petro-dollar hegemony that we’ve enjoyed the benefits of for more than forty years. Unfortunately, very few realize that the Yuan’s acceptance by world powers, combined with the Saudi acquisition of their own missile defense system, has completely removed the two factors that allowed us to enjoy dollar hegemony for so long. Literally overnight, these factors can be utilized to provide an explanation for replacement or removal of the U.S. dollar as the primary global reserve currency, and even as a global reserve currency in general.
The return of the dollar, to its standard fiat currency status, will be an earth-shaking event for many investors who were grand-fathered into dramatic, but seemingly unknown petro-dollar benefits. The bottom line however, which immediately needs to be understood and embraced by all American investors, is the fact that when the dollar loses its current status, all dollar-based paper asset investments will be directly and negatively affected. As usual, the one global currency that will not be negatively impacted by this power shift is gold and other physical precious metals. Protect your portfolio, family, and legacy with a larger than ever portion of physical precious metals. Call the experts at American Bullion for immediate assistance, at (800) 653-GOLD (4653). But no matter what, don’t get caught without a chair when the music stops!
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.