As we move into the second half of 2020, gold is increasingly likely to serve as an effective and necessary hedge, particularly in light of the Fed’s dovish stance, ongoing geopolitical conflicts, and the risks associated with the recession, stock market volatility, and US election.
The escalating tensions have many market analysts worried that the trade war between the U.S. and China which began before the outbreak could escalate into a full-scale and global event.
We can actively choose solutions that will help us weather the pandemic and its fallout, as well as prepare us for its ending, whenever that may be and however it may look.
COVID-19 and the headlines surrounding the battle against it continue to be the primary headwind affecting all markets.
The continued spread of COVID-19 remains the predominant factor affecting volatility in all markets. The emergency containment measures enacted worldwide to attempt to halt the outbreak have now been expanded in most countries, deepening the economic decline that began weeks ago.
In 1906, Alfred Henry Lewis stated, “There are only nine meals between mankind and anarchy.”
Since then, his observation has been echoed by people as disparate as Robert Heinlein and Leon Trotsky.
The slide in equity markets accelerated this week as the panic over the spread of COVID-19 truly set in across the globe.
The carnage in equity markets continued this week as the spread of COVID-19 expanded across the globe. Volatility seemed to surge on each new headline with regards to the virus.
1. As fears of further trade war escalations between the U.S. and China seem to be fading, eyes are turning to next week’s Federal Open Market Committee meeting by the Federal Reserve. Analysts will be parsing every word of Fed Chair Powell’s statements at the conclusion of next week’s meeting for indications on the near-term…
The ongoing trade dispute between the U.S. and China, uncertainty over the direction of U.S. monetary policy and continued uncertainty over the United Kingdom’s exit from the European Union all remain the primary drivers for market moves in the near term. A clearly sophisticated strike on Saudi Arabian oil facilities over the weekend also acted to send uncertainty and fear into markets.
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