As the bond market sold off late in 2016, the next best place to invest in would be the equities market. That plan certainly looks shaky considering Donald Trump’s recent tweets about trade. Trump’s current tweets have people eyeing gold and silver, in a move that almost looks similar to the early part of 2016. The bond market has not improved and has only become less attractive. And now stocks are looking less attractive as well.
Currencies really took a beating in 2016, especially the Chinese Yuan which went to levels not seen since 2008. The currency and trade problems around the world most certainly are just beginning and the precious metals look like the safe place to be at the moment. They will only grow in popularity as the hopes and dreams of making America great again begin to fade away and reality sets in. Since the election, the metals got hammered lower, only to see a modest rebound in early 2017. With markets heavily manipulated, it wouldn’t surprise anyone to see markets continue a Trump rally based on mere hope and to see continued pressure on the metals. With the market’s reactions to recent tweets from Trump, players in the market have suddenly become highly cautious and precious metals are once again attractive.
For more on what is happening to gold: