With only days to go before we – hopefully – learn who the next occupant of the White House will be, most investors are breathing a sigh of relief. We’ve been living with this uncertainty for far too long.
As things stand, it looks as though Trump has a solid chance of winning, but let’s hold off until we have a definitive outcome before making any financial moves.
If Trump wins and the Republicans retain the Senate, equities might continue to rally in the short term. However, I believe a correction is long overdue. Bitcoin may see a surge, while oil and gold could experience a decline.
A more libertarian president could be a boon for cryptocurrency, even if some of the top crypto players are supporting Kamala’s campaign. Trump’s “drill, baby, drill” stance might put downward pressure on oil, while gold could see a pullback as election-related uncertainty eases.
That said, gold might also ease if Kamala wins, given that the end of election uncertainty could have the same effect. However, as Kamala’s policies have yet to be clearly laid out, it may take some time before we fully understand how a Democratic-led administration would impact the economy.
An “ugly” scenario might be Kamala winning with a Republican-controlled Senate, leaving policy outcomes highly unpredictable.
In light of this pivotal election, I’ve avoided making major long-term positions, although I’ve held onto Bitcoin and gold, both of which have performed admirably in recent weeks. Regarding my gold position, I’m not ready to dig up the garden and sell just yet. I consider it a long-term hedge and would rather hold gold than euros. That said, from a speculative perspective, selling some gold if prices rise above $2800 could prove worthwhile over the coming months.
Across most financial instruments, I’d advise against diving in before election results are finalized. However, outside of gold and oil, commodities still appear to be relatively safer bets.
I’m closely watching soybeans, which have declined recently. If I can enter below 970, it could be a worthwhile punt, though corn and wheat are looking less attractive for buyers at this time. Similarly, while I remain bullish on commodities in the long run, I believe we might see better buying opportunities than what’s currently available.
I, like everyone else, will be relieved once this Presidential election is finally behind us.
On this side of the Atlantic, particularly in the UK, the economic picture is far from rosy.
While EU leaders claim disinflation is beneficial for Europe, the reality on the ground suggests otherwise. Germany, which many EU members viewed as their economic anchor, is now facing significant challenges, casting a shadow over the continent. With growth prospects bleak, we need to be cautious about where we invest.
While I don’t foresee much clarity in the near term, the EU’s policies are unlikely to change drastically. Renewable energy still seems a prudent investment, and my interest in the hydrogen sector is growing.
As I write this, the UK’s first Labour government budget is about to be announced. Like many others, I view this government as less than ideal, indeed I see it as disastrous for the UK. However, its support for the renewable energy sector is something investors shouldn’t ignore.
With that in mind, I encourage investors to explore the opportunities in hydrogen energy, especially Haush Green Hydrogen, which you can learn more about here.
For fellow gold bulls who, unlike me, don’t fancy burying their holdings, an innovative gold investment product on trademakers is worth considering. Click here for more details.
The post Next Week: The Good, the Bad, or the Ugly? first appeared on JP Fund Services.
The post Next Week: The Good, the Bad, or the Ugly? appeared first on JP Fund Services.
The post Next Week: The Good, the Bad, or the Ugly? first appeared on trademakers.