It is a good time to add gold to your portfolio
The flu has devastated the country this winter. People are dropping like flies, as this year’s flu vaccine has proven less effective due to various strains of flu circulating.
Today, the Centers for Disease Control and Prevention announced that, for the first time in its 13 years of flu monitoring, the continental United States has shown “widespread” flu activity.
The impact of this flu season could cost employers more than $ 9.4 billion in lost productivity, according to Challenger, Gray & Christmas.
But the flu isn’t creating the only shutdown that investors should be concerned about right now. Fortunately, there is a bright star waiting on the wings to fly …
Don’t ignore this closure
Nobody likes to budget and stick to it. Washington is certainly no different.
But they agreed to funds to keep the government lights off at midnight tonight. While the House of Representatives pushed through a month-long interim measure on Thursday, the chances of it passing by the Senate are pretty daunting.
The potential for a partial government shutdown looks strong. And even a short shutdown could add uncertainty to the market.
Since 1976, there have been 18 government closures, and only 44% of them saw the market close higher during that time period.
On average, the market has fallen 0.6%.
I’m sure you’re thinking, “But you’re being silly. A 0.6% drop is small.”
And you are right. A 0.6% drop is really … well, just a drop in the bucket. But consider the recent run of the market.
The S&P 500 has gone 394 days without a 5% decline, according to Goldman Sachs. That is what unites the longest span in the history of the market.
We are facing an overloaded market and you are looking for an excuse to blow off some steam in the form of a pullback.
Under normal circumstances, a brief government shutdown would not have much of an impact. But we are not operating under normal circumstances.
The turmoil in Washington could be used as an easy excuse to take some gains off the table, sending stocks down sharply.
However, there is one prominent element this year that could easily weather a government shutdown and a stock market sell-off.
Gold is the only strength you need
Gold has enjoyed a stellar rally. After putting a short-term low on December 12 at $ 1,238.30, the yellow metal has rallied 7.7%.
Over the same time period, the S&P 500 Index has gained 5.1%
Gold is a favorite among investors in times of turmoil and uncertainty.
Load Gold Now
Gold has surprisingly outperformed the broader market over the past month, and it is likely to maintain that uptrend through a possible pullback in stocks.
You can take advantage of those gold gains through mining companies that are poised to post solid gains on the strength of the gold price.