Why Gold is Your Safe Harbor in Uncertain Times
As Election Day approaches, the country is gripped with uncertainty, and this feeling extends to our portfolios. The recent LifeStance Health survey revealed that 79% of Americans are experiencing election-related anxiety. The markets are not immune to this uncertainty, as all three major indexes experienced a downturn recently due to political uncertainty.
The History of Market Volatility During Elections
While elections themselves do not directly drive market movements, the combination of events during election seasons can lead to increased market volatility. This year, with polls showing no clear winner, the situation mirrors the contentious 2000 election between George W. Bush and Al Gore. Looking at the CBOE Volatility Index (VIX), it is evident that market volatility typically rises in September and October during presidential election years since 1985, subsiding in November. However, exceptions like November 2000 and 2008 exist, with the latter being influenced by the financial crisis.
The Role of Gold in Times of Chaos
Gold, often underestimated as a mere shiny rock with no productive value, shines during times of chaos and uncertainty. Despite not producing anything tangible, gold historically offers great trading opportunities during times of economic crises and falling stock markets. In the aftermath of the 2000 and 2008 elections, gold outperformed the S&P 500, showcasing its value as a safe haven asset.
Gold has already surged over 30% this year amid global tensions and economic instability, with some gold-related trades performing even better. For example, a gold mining company recommended in January has seen a 60% increase since then. As we approach another contentious election, turning to gold as a hedge against uncertainty seems like a wise choice for many investors.
Using Volatility to Your Advantage
While gold is a valuable asset, it’s not advisable to put all your money into it. With expected market volatility post-election, having a trading plan is essential. InvestorPlace Senior Analyst Louis Navellier has a powerful system designed to not only survive but profit from post-election volatility. The trades flagged by this system have outperformed the S&P 500 significantly in back-tests, and most open trades are winners.
Louis will be revealing this system at his “Day-After Summit” presentation, offering a chance to triple your money or more in a matter of weeks while avoiding massive losses triggered by market reactions. By utilizing this system, investors can turn volatility into profits, regardless of the election outcome.
In conclusion, amidst the uncertainty surrounding the upcoming election, considering gold as a safe harbor asset and having a solid trading plan in place can help investors navigate through turbulent times and emerge stronger on the other side.