Ryan Stancil,
Editor
Sept. 5, 2022
This recession is a weird one.
We’ve been living with this runaway inflation that has increased every aspect of the cost of living for most of the year now.
As one would expect among increased gas and food prices, consumer confidence was on a downward trend.
But then it started climbing as gas prices dropped. August saw consumer confidence break a three-month decline in a signal that consumer spending may pick up.
Jerome Powell, in his speech at Jackson Hole, warned that there may be some pain ahead as the Federal Reserve stays the course in raising interest rates. Even so, the ruling consensus seems to be that the danger has passed and the bear market has gone into hibernation.
The broader indices are down year-to-date but the country’s labor market is strong as shown by the most recent jobs report.
The housing market is still facing a crisis as demand continues to decline, but the dollar is strong, which makes for a nice headline and can help that consumer confidence continue to climb.
Does that mean it’s time to dive into the market and start buying while indices are down?
It’s impossible to predict the future, of course. No one knows how the NASDAQ and S&P are going to shape up for the remainder of the year.
But one thing that’s important to keep in mind is that this investing environment should be approached with a mindset for the long game.
These last few years have been an era of unprecedented times. That’s true socially, politically, and, for our purposes, economically.
It’s why, despite how the mainstream tries to spin it and no matter what things may look like on the surface, your plan for your finances should take into account what the landscape will look like over the long term.
Because history often repeats itself.
In the context of the investing environment, that means that times of uncertainty tend to favor certain assets and sectors.
That’s why things are likely to change when the Fed eventually shifts course and continues with its money printing and rate dropping.
And when that happens, the economic metrics that are strong now will look completely different. Jobs numbers may decline, the dollar may weaken, and the bear may come roaring back.
These things have happened before, and when they did, one of the ways that investors protected their money was via gold.
As it stands, gold has been weakening in the face of a strong dollar. The US is pretty much the only place where that’s the case. Looking at other countries where inflation is much higher, the yellow metal is at all-time highs as people turn to it to preserve their wealth.
That’s a story that’s played out time and again throughout economic downturns. That story will likely repeat itself when the Fed does eventually about-face and the US dollar begins to weaken.
All the factors are in place for gold to enter a new bull market then, and a little-known stock may be the best way to invest in it this time.
It’s a tiny developer that’s sitting on what might be one of the largest gold discoveries in the country. The mining district where it’s located has a 150-year history and is one of the most well-known in the world. So the potential is there, and Nick Hodge has a new documentary detailing just how big this deposit could be.
The premiere for it will be this week on September 8th. It’s free to watch… but by invitation-only.
Sign up for your invite to learn all about this timely money-making opportunity just before the gold sector takes off like never before.
Ryan Stancil
Editor, Daily Profit Cycle