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ValuePenguin: 3 Reasons to Buy Gold Right Now

AP  |  F. McGuire

gold-stacks

Savvy investors will remember that gold has long been a safe haven in times of uncertainty.

And nothing has been more uncertain that the economic and political landscape since President Donald Trump took official possession of the Oval Office.

Nasdaq.com recently highlighted three reasons from ValuePenguin as to why buying gold and gold-related shares is a smart move right now:

Here are three reasons to consider doing so, along with some measured advice about how much gold-plating you should actually add to your portfolio in 2017.

Inflation Fears Persist

“As recently as January 18, the CPI had increased by 2.1%, marking the largest year-over-year increase since June 2014. Looming inflation could further increase gold’s value. As the The Wall Street Journal noted, some investors tend to buy gold on signs of quickening inflation, believing the metal will hold its value better than other assets when consumer prices rise,” the report said.

Correlations Are High

“A traditional hedge against uncertainty at home is to invest elsewhere in the world, where differing conditions should prevail. Yet as trade becomes increasingly globalized, there’s a rising correlation of performance among stocks around the world,” the report said.

A New Presidency Brings Uncertainty

“In these early days of the Trump presidency, the administration’s long-term policies remain unclear. It’s true that the equities market continues to hit new highs on expectations of a friendlier business environment, but it’s unclear how long that growth will continue,” the report said.

“High share prices mean investors will need to see remarkable returns from companies in the next several quarters, and some firms will surely fail to deliver because their high valuations are based less on fundamentals and more on aspirations,” it said.

As his first week in office proves, Trump will be a demanding leader who applies the best of his negotiating skills to push for U.S. growth, .

Trump won’t be an ideological purist like Republicans who support free trade but don’t fight for fair trade, Horowitz said.

“We’ve had an anti-business president now for eight years who doesn’t take a hard-nosed attitude towards these deals. Trump is going to get better deals for us, which is still free trade.”

Horowitz’s new book, “The Big Agenda: President Trump’s Plan to Save America,” reveals Trump’s “first 100 days strategy” to roll back Obama’s legislative and executive record.

Horowitz’s book is the first book about the Trump presidency and has soared to the top of the Amazon bestseller charts, becoming the No.1-selling book on the web.

Trump will also lead the way in making infrastructure spending to boost the U.S. economy, Horowitz said.

“If the economy grows as it will under Trump, there’s going to be a lot more money to spend,” he said.

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