Election years have always proven to have controlling effects on the markets, and although the same could be said for this election, the circumstances we are facing are different, much different.
The American economy was booming until COVID hit. Every sector, business, market, commodity, etc. felt its impacts. Then, the $2.2 trillion stimulus package, or “The CARES Act,” passed, which intended to give Americans affected by COVID a jumpstart, but in some cases, not all retirement plans are accepting the CARES Act provisions.
Even so, the US dollar fell 10% and gold aggressively moved over 30% from $1,450 up past $2k, breaking an all-time high record in the six months following the passing of The CARES Act.
Now, with the talks and negotiation of another stimulus package in progress, many believe that the dollar may continue to plunge as gold rises. While the dollar’s weakness has already been exposed and is expected to decline gradually, some fear that it will mirror its performance of the first stimulus passing and plunge upon its approval.
A perfect example of the market’s sensitivity and reaction to this type of news is when President Trump and the White House stated that there would not be a second stimulus package. The Dow Jones slid over 300 points on the same day.
But just a few days later, the President made it clear that he was in favor of a second stimulus package stating on the Rush Limbaugh radio show, “I’d like to see a bigger stimulus package than either the Republicans or Democrats is offering.” And just like that, the markets rallied back.
The surprising factor in this election is that some experts believe that gold will continue to rise regardless of whether it is a red or blue win; however, a blue win could be the most bullish gold scenario.
It’s clear to see that gold’s value and performance, especially over the last few years, has not gone unnoticed- and the real rally may begin with the passing of a second stimulus package.
The good news, there are several financial options you can make to help your retirement savings. Americans are catching hold of their own decision-making and taking matters into their hands by swapping printed Dollars for Gold and Silver and rolling their eligible IRAs and 401(k)’s into a physical metals IRA. This move in a time of such uncertainty is giving account holders the choice of where and how they save their money.
Click here to learn how thousands of Americans are protecting and diversifying their investments with precious metals like gold in these uncertain times. Or call us at 800-462-0071 to receive your free custom-tailored Information Guide.