A global sell-off brought the stock market to its knees on Monday.
The Dow Jones Industrial Average plunged 767.27 points in a day last week.
That’s the single worst plunge the index has seen all year!
Major players such as Apple and Boeing saw their stocks tumble.
This week’s rebound hasn’t stopped some analysts from predicting an even steeper sell-off in the near future.
Some say it could be “Lehman-like.”
You might recall that Lehman Brothers was one of the many financial firms whose bankruptcy helped set off the 2007 to 2008 global recession.
We understand if you have a bleak outlook on the markets.
The markets have certainly reacted to these events — or rather, overreacted.
You see, two key events tipped the markets in favor of the bears.
Last week, the Federal Reserve announced its latest interest rate cut. It stoked fears about even slower economic growth for the rest of the year.
Then President Trump levied more tariffs on Chinese goods.
Beijing responded by vowing to stop buying billions in U.S. agricultural products. That embargo will completely stop a vital source of revenue for American farmers.
China has already levied tariffs on over $110 billion worth of U.S. imports. Many market watchers see no end to the trade war in sight.
Now, the news may sound dire. But right now, the markets hold one huge opportunity for profit.
Why Gold Is the Must-Own Metal Today
One asset has a proven track record of protecting your portfolio in times of economic strife: gold.
Many traders have entered meltdown mode. But gold bugs are celebrating!
Gold prices continue to surpass other precious metals. The commodity now sells at over $1,500 an ounce. That’s a 16% increase over seven months!
Gold is the one asset that you can (and should) park your money in during any market.
And if the stock market continues to fall, gold’s value will climb even higher.
Matt Badiali and John Ross have advised readers to buy this safe-haven asset many times over the years.
Matt argues that those who hold physical gold possess the ultimate safeguard against volatility:
Gold is the safe haven we need to own today. This is true whether you buy bullion or allocate part of your retirement account to paper gold. You can even just buy a gold exchange-traded fund (ETF) in your trading account.
Whatever you do, you must own gold. It’s a place to park money. And it’s relatively immune to the gyrations of the stock market.
Both Matt and John advise holding physical gold.
But in the meantime, they think some gold stocks could fall further.
John explained why you’ll want to avoid them and other sectors with heavy exposure to Chinese investment:
Monday put the exclamation point on the market’s latest scare.
That’s when the yuan fell below a key level relative to the U.S. dollar.
But that move was a market reaction. It’s not Beijing’s retaliation to more tariffs.
Investors freaked out. It’s not some uncontrollable trade war escalation. And you shouldn’t freak out.
China has a high pain tolerance in this trade war, but a currency in free fall is too much pain for its economy and financial system to handle.
You’ll want to avoid semiconductors as well as metals and mining stocks. Agriculture stocks with heavy exposure to China are wise to avoid.
And with greater risk comes greater reward!
Natural resource, materials and energy stocks are cheap buys right now.
I think the yuan scare will blow over if it hasn’t already as China reins it in.
Matt and John designed a system to “buy on black” when stocks are rising — and to “buy on red” to profit when stocks are falling.
They’re watching for metal and mining stocks set to fall in the aftermath of China’s actions.
If you’re interested in learning more about this market-beating strategy, just click here.
Diversification Is Key
Chad Shoop also watches gold’s price action for great profit opportunities. And he thinks it’s set to surge through 2019!
Chad always suggests holding a range of diverse trades in your portfolio.
It’s his method for staying ahead of volatility:
My favorite approach to volatility is always diversification.
You should own some positions that hold up better in volatile periods or benefit from pullbacks in the market. Those will help you navigate a turbulent market while sticking to your strategy.
A great asset to have exposure to, and one that I believe is starting a multiyear bull market, is gold. Adding gold or precious metals funds to your portfolio will act as a hedge to volatility in stocks.
Chad has recommended investments in gold to his Automatic Profits Alert subscribers. From 2018 to 2019, they grabbed gains of more than 47% playing the metal miners’ prime season!
To learn more about Chad’s proven system, just click here.
Our experts have more content to share with you this week.
Check Out Our Latest YouTube Videos!
Anthony Planas released his newest episode of Marijuana Markets: A POTcast. He talks about the latest push for congressional cooperation with legal pot growers, the shift away from black-market cannabis and more.
Watch the video below to learn more.
Chad told readers about the CBOE S&P 500 Index (VIX), which tracks market volatility with rising fear in the markets. Many investors are scared to pour more money into the markets.
Chad has one strategy he uses to beat the markets during volatility. You can learn more about it by watching the video below.
Finally, Charles Mizrahi explained why right now is the best time to buy stocks at bargain prices.
President Trump’s announcement of more tariffs on Chinese goods is fueling the latest market sell-off. But Charles knows now is not the time to sell.
He let readers know about one fund that tracks the highest-quality stocks at bargain prices. Learn more about it by watching the video below.
Read on to see the topics they’re following this week.
Regards,
The Winning Investor Daily Team
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Gold and Gold Stocks Are the Investment of the Next 25 Years
Gold prices are on the rise, and many investors are selling their shares. But the U.S.-China trade war and slow growth in the U.S. economy will make gold a favorable hedge. Matt Badiali talks about the huge disconnect between gold stocks and Wall Street, and why it’s time to follow the smart money and invest in the yellow metal. (3-minute read)
Stock Market Volatility Ahead: Sell Put Options for Double-Digit Income
Last week, the Federal Reserve announced a rate cut. Investors sold their positions. The U.S.-China trade war also caused a sell-off in the stock market. Both events increased fear and volatility for investors. Chad Shoop sees opportunity where others see gloom. He shares his favorite strategy to make income from the market’s volatility. (3-minute read)
Don’t Fear China’s Yuan “Manipulation”: Buy Into Safe, Double-Digit Gains
On August 1, President Trump announced on Twitter an extra 10% tariff on Chinese goods. China retaliated by allowing a devaluation of its currency, the yuan. While many investors fear this turn of events, John Ross sees profitable possibilities. He shares a way for you to take advantage of the trade war and a weaker yuan. (3-minute read)
Stock Market Sell-Off: What You Should Do Next
President Trump’s Twitter announcement about extra tariffs on Chinese goods sparked a sell-off in the stock market. The Dow Jones Industrial Average and the Nasdaq Composite Index fell 4% and 6%, respectively. Money managers are scared. But Charles Mizrahi knows the turmoil in the stock market won’t last. He shares his view on why it’s time to start buying and not selling. (5-minute video)
Why Pot Stock Are Falling and Your Opportunity for a 50% Rally
Investors are skeptical about the cannabis sector. And the sentiment shows as the sector’s shares keep falling. Slow sales, mounting costs and scandals have put a dent in the developing industry. Anthony Planas recognizes opportunity where other investors see gloom. He talks about the lucrative possibilities that the temporary dip creates. (3-minute read)