Oct. 3, 2022
Negative sentiment is starting to hit the mainstream, so you know we’re truly in it now.
Over the past week, you haven’t been able to look at any economic news site without reading about the grim economic outlook.
Then, last Wednesday, some big names in the finance industry weighed in.
CNBC released results from a quarterly CFO Council survey in which 57% of CFOs said that they do not yet think inflation has peaked. The survey questioned chief financial officers at major organizations and includes executives from a number of industries. These are names in sectors like health care, tech, retail, finance, and telecoms, among others.
And the negative sentiment didn’t stop there.
The fact that grim times are ahead was repeated by CEOs of companies like Costco (NASDAQ: COST) and Unilever (NYSE: UL). With the Fed committed to raising rates and slowing down the economy, those CEOs expressed that we can expect trouble over the next few quarters.
If you’re a frequent reader of these pages, you know that this has been the case for months now.
The signs were all there, and the conditions have only worsened as inflation spiraled and the Fed began its campaign of interest rate raises.
So while, according to many outlets, we’re seeing the beginning of economic turmoil, the reality is we’re witnessing a danger that’s been lurking this whole time and is now too ever-present to ignore.
It started back when they were telling us that the inflation behind all of this was transitory and short-lived. Now we get to see what kind of consequences come with living in this kind of environment long-term.
And it won’t just be the United States. Financial contagion is spreading worldwide.
War is still raging in Ukraine, global demand for manufactured goods is dropping and leaving export-dependant economies in a bind, and China is dealing with a real estate bubble.
All of this makes the dollar stronger versus other currencies, which creates a scenario where multinationals that rely on exports for sales will have a harder time making money, thus tanking their shares further. And when share value drops, revenue projections have to be pared back as sentiment sours even further.
We’ll be in this situation for as long as the Fed feels like it can get away with the aggression it’s been showing. So far, it’s justified its attitude by pointing at the strength of the US labor market. On the surface, things look fine there, but the coming months may cause that to change too.
One big indicator of that has been recent headlines from big companies like Meta (NASDAQ: META) and other tech firms that not only are freezing hiring, but layoffs may be coming. Those are just rumblings for now, but then, so was the word that runaway inflation was on the horizon.
So, in short, things are looking gloomy for the foreseeable future. Just about every sector and index is down for the year and slipping further. Even traditional hedges haven’t been safe.
So the goal now is wealth preservation.
And one of the few ways to do that in this current market is through gold.
Like everything else, it has taken a beating. But in the larger scheme, it has outperformed many other sectors and is holding on to its reputation as a resilient investment in tough times.
But as we’ve seen, those tough times are nowhere near over, which means gold has a lot more runway to act as a place to protect wealth.
Bullion has often been the traditional investment play, but gold miners are just as viable.
With things poised to get more painful over the next few quarters, more investors are going to be looking for a way to protect what’s theirs. That’s when they will turn their sights on the companies doing the drilling.
One company is perfectly positioned to become a household name when that shift happens.
It’s based in the US and the deposit it’s sitting on may be one of the biggest, ever. So when demand for the yellow metal climbs, this company will be the one everyone runs to.
A new video outlines exactly what this company is about and why it will be one of the big winners in a gold bull market. It’s boots-on-the-ground research straight from the source and the kind of thing most investors don’t know about.
Drills are turning now, and the word will get out before you know it.
Learn all of the details and see just why this will be one of the few winning investments in a time when that kind of thing is becoming harder to find.
Editor, Daily Profit Cycle