Today is a day we’ve all been waiting for with excitement… and some trepidation too. When the dust settles, we’ll have a new leader for the next four years who will face challenges no American President ever has before.
What could be more quintessentially American than entering the ballot box, pulling the curtain and exercising this sacred birthright? It is truly remarkable to get to decide the direction of our government at this critical, acrimonious time with the peaceful stroke of a pen.
As Reagan said, the electoral process is our country’s crown jewel.
There is another quintessential tenet of American life: self-reliance. Preparing oneself and one’s family for whatever may come is as essential as it has ever been. No matter who wins the day today, the road ahead for America will not be an easy one.
Consider the duty you have to yourself and your loved ones to safeguard your hard-earned assets and protect your retirement future. Many market analysts are pointing to gold and silver as the way to get the job done.
POST-ELECTION LOOK: ANALYST FORECASTS FOR GOLD
The U.S. Mint reports that retail investors are adding to their gold holdings. Gold-coin sales gained for a third month in October, the longest streak in almost six years and assets in bullion ETFs climbed. In addition, hedge funds have recently piled into bullion to diversify their risk exposure.
Stifel, Nicolaus & Co. money manager Chad Morganlander thinks post-election market jitters are here to stay, which should cause investors to gravitate toward safe-haven assets like gold. Morganlander advises investors to put their seat belts on because he expects tremendous volatility regardless of who sits in the White House next year.
According to Citigroup analysts, a Trump victory could represent significant policy uncertainty and push gold to $1,400 in a knee-jerk reaction. On the other hand, a Clinton win could usher in sharp fiscal expansion, boost inflation prospects and support gold over the medium term.
Technical analyst and publisher Ken Morrison remains favorable on gold’s upside potential with a target of $1,325 in the weeks ahead. Morrison believes the combination of a weakening dollar and uncertainty over the outcome and aftermath of the U.S. election will bring more investors into the gold market. CMC chief market analyst Colin Cieszynski remains bullish on gold and thinks the precious metals market could appreciate significantly from here.
HSBC Holdings PLC Chief Metals Analyst James Steele thinks gold will jump as much as 8% post-election regardless of who is the next President. Steele says both candidates have advocated trade policies that will stimulate demand for gold. ETF Securities James Butterfill agrees with HSBC and predicts gold prices may rise as much as 10% within a year because gold acts as a hedge against political uncertainty.
David Stockman, the former Director of the Office of Management and Budget under President Reagan, thinks the markets are overinflated and foresees serious declines ahead for stocks and bonds no matter who is President. Stockman expects continued gridlock in Washington and as much as a 25% decline in stock market levels.
Stockman theorizes that a Clinton administration will be subjected to endless investigations and the House of Representatives will stop Clinton policy proposals dead in their tracks. He predicts more political acrimony and brinkmanship for the next six months and no easy solution from the Fed as we slide into recession. Stockman recommends investors decrease their stock and bond positions and keep their assets in cash and gold.
GOLD INVESTORS: RIDING A RISING TIDE OF RISK
With all of the hype and media coverage of this past presidential election, it can be easy to forget (temporarily) our country’s staggering national debt and exhausted economy, the rising geopolitical risks of China and Russia, negative interest rates globally and the uncertainty caused by Brexit.
These and other market risks are real and must be factored into any retirement investor’s decision-making.
Every four years we look to Washington, D.C. to bring us leadership that can fix our tarnished national prospects with sensible policies and a spirit of cooperation that marked the golden ages of American politics. But if our country continues to slide into further debt and political division, gold investors could be richly rewarded.
Regardless of who becomes the next President, gold will retain its strong appeal as a diversification tool, a potentially appreciating asset and a safe haven outside the control of politicians or central bankers.
