Well it’s clear no one knows what the hell is happening. Gold is stuttering, after an almighty run since January. Markets are off the recent tops, but not falling hard, and Oil is bouncing around like a rubber ball.
What does that mean?
I tend to think it’s a build up to some pre-election strength in the USA. More often than not the run up to the election is a strong period (apart from an odd occasion) where markets seem to grind up higher. No doubt there will be a catalyst, maybe an unexpected piece of data.
However, Gold may be the thing to watch. If there is a serious chance that Trump may make president I would expect money to pile into Gold. Uncertainty is something the smart money doesn’t like. An old Donald is certainly an “uncertain” entity.
And if he did get in to power, we could see an excellent dip in the market for a buying opportunity with a long term view. It’s the sort of unknown that can cause a corrective move, and over extend. These always bring about a good entry point if you are patient with your entry.
Just remember, when there is fear everywhere, it’s probably time to buy.
Watch the news wires, if every other article is predicting the end of the world (in financial terms) then it’s getting near!