Is the U.S. economy about to get socked with a brutal recession?
Danielle DiMartino, former Advisor to the President of the Dallas Federal Reserve, says this nightmare scenario could already be in motion.
For a start, DiMartino says a significant slowdown in housing has already begun. She is also wary of the dramatic drop on oil prices and what that could mean about true economic strength worldwide.
Teendayi Kapfidze, Chief Economist at LendingTree, agrees there could be recession around the corner.
“If we get some kind of shock externally, that really puts the economy at risk. Certainly, there’s growing risk of recession – 2019, 2020, going forward,” he says.
That’s likely why the Wall Street Journal just reported that investors are seeking safe havens at the fastest rate in a decade. According to the paper, allocations to cash, bonds and other assets like gold and silver tend to rise in the months ahead of a recession.
This isn’t a “sky is falling” situation… yet.
But, perhaps it’s a prudent time for you to consider if your retirement account is destined to suffer a painful blow if the economy surprises us on the downside?
Fortunately, it isn’t too late to get prepared… yet.
There is plenty of information below about what this clear and pending recession danger could mean to your portfolio in 2019. Please read on!
PETER HUG: GOLD HEADING TO $1500 IN 2019
Peter Hug, global trading director at Kitco News, says gold prices are on a powerful uptrend in 2019 that is far more than seasonal.
The problem, once again, is looming recession.
According to Hug, poorly understood macroeconomic forces like the hidden economic slowdown in the U.S. could trigger unanticipated dovishness by the Federal Reserve in 2019 and push gold higher still.
“If the Fed reverses course again because the economy is slowing down, then I think we could have the same liquidity event we had [in 2011],” said Hug. “I think you do see gold at maybe $1,450-$1,500/oz.”
GOOD NEWS FOR SILVER IRA HOLDERS: $20/OZ?
Good news, silver enthusiasts!
Noted investor and pundit Todd Horwitz thinks silver could outperform gold in 2019, even as he expects both to do well.
“We expect both gold and silver to breakout to the upside in 2019, with our first targets of $1400/oz for gold and $20/oz for silver,” Horwitz says.
In 2019, Horwitz believes the current wide ratio between gold and silver prices (over 80 to 1) will decrease in 2019 to as little as 70 to 1, benefiting silver in an outsize fashion.
However, he has great news for gold owners as well.
“2019 looks like it is going to be the year of gold and silver,” says Horwitz. “Both appear to have bottomed and are attracting new money while holding every new level of support.”
Some of the reasons he cites include overblown negativity about the future impact of Federal Reserve rate moves and the direction of the U.S. dollar. He believes this misperception will be widely discredited soon and could result in a strong surge of interest in safe haven assets like gold and silver for bullion-backed IRAs.
Horwitz has little faith in the ability of the Federal Reserve to do the right thing when we need it most: “The good news for metals is that the Fed continues to make all the wrong decisions. For 105 years the Fed has never made the right decision.”
Horwitz continues: “With Fed Chair Powell displaying his weakness and inability to follow his original plan, we can expect further erosion of equities and money seeking safe harbor in commodities.”
SAFETY IN THE STORM: IRISH INVESTORS RUN TO GOLD
With so much big news at home in the U.S., many Americans have forgotten about the looming Brexit deadline.
But the big breakup is coming fast at the end of March.
Frankly, Europe doesn’t seem to have a chance of being ready. The political forces at work are deeply at odds, despite persistent efforts to find a deal via British Prime Minister Theresa May. Even if hugely difficult points are solved, months and months of preparation still lie ahead to ensure a smooth transition.
Alarmingly, time has simply run out and the train just might be headed off a cliff.
In addition to stressful economic and political uncertainty for U.K. residents, a massive upheaval in trade could easily result and send rippling effects across Europe and the world.
That’s why Irish investors are turning to gold for safety, according to Ireland’s Merrion Vaults.
“We saw a 70% jump in clients from Northern Ireland in 2018 as investors rushed to convert their cash into gold,” said Merrion Vaults co-founder Seamus Fahy.
Because the U.K. will be breaking away from the Euro, investors are buying physical gold bars and coins to stave off the effects of a possible currency selloff and further economic uncertainty.
“Customers are taking money – physical money – out of the bank and they’re buying gold bullion with us to store it, and it’s a hedge,” Fahy noted. “In times of crisis you always see what’s called flight to safety.”
TRUST YOUR INSTINCTS: GETTING INFORMED IS A SMART MOVE
What is your definition of true safety?
What kind of sense of security allows you a refreshing, full night’s sleep no matter what happens with Brexit, or China, or North Korea?
We don’t believe in “bag lady” scare tactics… we just sincerely want you to reach the goals you’ve spent a lifetime working for.
Don’t spend another sleepless night thinking about your portfolio and your family’s future.
To be clear, we don’t advocate market timing. But possibly smoothing out the bumps of volatility along the way is something desirable no matter the prevailing investment weather.
As you know, we highly suggest you consider gold and silver for your IRA. A gold bullion backed IRA is of considerable comfort in these times of uncertainty.