When you look around the major financial news outlets, you'll notice that there isn't a lot of positivity regarding the economy right now - and for good reason.
A significant economic slowdown would lead to a term that you're likely to hear a lot in the coming months.
It's a scenario that would likely mean a big downturn for a whole host of stocks - but on the other side of the coin, there's an asset class that would be poised for one of the biggest booms we've seen in more than a decade.
And the time to act to get in on this enormous opportunity is now.
Today, I want to help you understand what exactly what this means for your investments, what typically happens to the market in this situation, and how my latest project can help you reap massive gains from it.
What is "Risk Off?"
When traders and investors are optimistic about the prospects of economic growth and are bullish on the stock market, they will typically invest in instruments which are considered higher risk, like stocks and futures contracts. This is known as a "Risk On" environment.
In 2023, that is certainly not the case.
It seems that more often than not, the headlines have been dominated by bad news so far this year.
More than half a trillion dollars in assets were recently lost after the collapse of several prominent financial institutions like Silicon Valley Bank, among others. The fallout and continued crisis in the banking industry has exacerbated existing concerns that lending will experience a severe downturn.
Compounding those issues for the economy, the Federal Reserve has been battling rising inflation by raising interest rates ten times over the last year - and data now suggests that consumer spending is finally beginning to slow as Americans begin to feel the full weight of rising prices.
While concerns over the potential of a recession due to the Fed's economic tightening have been on the minds of economist for months now, the latest report issued by the Bureau of Economic Analysis - which showed the U.S. Gross Domestic Product (GDP) grew by just 1.1%, down from 2.6% in the prior quarter - has many convinced that a recession is now a foregone conclusion.
In times like these, traders and investors will often shift to Risk Off trading, moving their portfolios to what are widely thought of as safer assets - like bonds, CDs, and...
Gold.
That last one is what I'm currently laser-focused on because of the potential for a once-in-a-lifetime profit opportunity I see coming.
On Thursday, I spelled out all of the reasons why we could see gold and precious metals make an historic run over the next six months in this special presentation.
And if you know me, you know I'm all about patterns - and investors have been in positions like this before and were able to collect huge profits by playing the gold market at the right time.
Don't Let the Next Gold Boom Pass You By
We've already discussed the huge effect inflation and the value of the dollar can have on the price of gold - and both are huge drivers of Risk Off trading.
That's not just speculation. Historical data shows us just how lucrative these economic conditions can be...
In 1979, inflation was devastatingly high at over 11%. Just after the new year in 1980, gold prices peaked at $850 an ounce.
Even though gold had been on the rise off its lows for more than two years at the time, investors that had bought in six months before that peak could've made over a 184% profit.
In 2006, the dollar lost roughly 11% of its value vs. the euro over the course of the year due to stagnant interest rates in the U.S. while European central banks continued to move rates higher.
The weakening dollar - in addition to the geopolitical tension of Iran's nuclear ambitions -spooked investors, who began to pour money into safe havens, and gold eventually skyrocketed to $725/oz.
If you had invested in gold at the start of 2006 when concerns about the weakening dollar first began and held until its peak in March of 2008, you'd have seen a 96.5% return on your investment.
Today, gold has been rising off of the October 2022 lows as speculation that the Fed's latest monetary tightening effort could soon be coming to an end first began.
This month, the price of gold tested a long-term resistance level at its all-time high.
And with inflation still high, the high possibility of a recession, and geopolitical tensions in Europe and Asia, I believe gold will break through that resistance and could reach as high as $5,000 an ounce within 180 days!
To capitalize on this incredible opportunity, I've teamed up with Brien Lundin, a forty-year veteran of the precious metals market to identify some of the best gold, silver, and other precious metals stocks that are poised to potentially hand you the biggest gains over the next six months.
The chance to experience the kind of massive run up we're about to see doesn't come around often - don't miss out. Get all of the details right here.
To your success,
Tom Gentile
America's #1 Pattern Trader
The post A Massive Shift in the Market is About to Hand You a Golden Opportunity... appeared first on Power Profit Trades.
About the Author
Tom Gentile, options trading specialist for Money Map Press, is widely known as America's No. 1 Pattern Trader thanks to his nearly 30 years of experience spotting lucrative patterns in options trading. Tom has taught over 300,000 traders his option trading secrets in a variety of settings, including seminars and workshops. He's also a bestselling author of eight books and training courses.