Bear market coming, gold(GLD) assets become essential

The economic data of the global economic powers have been deteriorating, entering the bear market stage of the economy, and people have become more cautious when choosing asset investment.

We should choose investment products with a low correlation coefficient with economic performance and investment products suitable for the current economic cycle. Investors should pay more attention to foreign exchange and commodity markets so that they can add value to your assets.

Among many assets, anti-inflation commodities such as gold have become essential assets.

Take gold as an example. For many years, gold has been regarded as an anti-inflation commodity by international capital markets and has been regarded as an important asset hedging tool by investors.

There is also a saying, "The world bought gold during turbulent times." From basic political theory, we know that gold is not currency, and the currency is naturally gold and silver.

Although gold has withdrawn from the market as a currency, its attributes as a currency still exist. The credit currency circulating in the market is based on the commitment of a country, and the currency itself is worthless.

In other words, the state promises to convert currency into commodities of corresponding value. Therefore, when a country experiences a credit crisis, it will trigger a currency crisis and the currency in circulation is likely to be worthless.

But gold is not based on national credit, it has high value itself, so it can survive the crisis.

With the risk aversion further heating up, gold is expected to continue to rise.

Gold price weekly chart

In terms of technical analysis, the weekly gold price chart is in an upward phase and should continue to be held.

Through the following simple model of gold, The reasonable price of gold is more than $2,500.

Comments

Will the Great Depression make a comeback?

the Great Depression On March 21, 2020, the United States already had initial unemployment data. Exceeding market expectations, the number of applicants reached 3.28 million, a record high. The current unemployment situation in the United States. Before March 7, employment in the United States was not affected by the epidemic. In the week of March 7, the number of people applying for unemployment benefits for the first time in the United States was 211,000, a decrease of 4,000 compared to the previous week. It is still healthy. This shows that the United States is in a good employment track range. The actual data began to fluctuate, that is, the data for the week of March 14, the number of people applying for relief reached 282,000, a slight increase. On March 21, the number of people applying for unemployment benefits soared to a record high this week. 1.7 million people have far exceeded expectations, and market expectations are about 1.5 to 1.7 million people. It can be said...

Investors have begun to switch back to traditional growth stocks

On Thursday, the stock prices of Cisco, Alphabet, and IBM hit new highs. But more importantly, the previously unpopular speculative growth stocks, including stocks bought by many ARK funds, have now begun to rebound. How is this going? Investors' perspective on the market is changing. In the first quarter of this year, mainstream voices in the market believe that the economy will restart strongly, bond yields will rise, and inflation may become a problem later this year. After the end of the first quarter, these expectations were only partially fulfilled. The U.S. economy has indeed restarted strongly, but bond yields fell in the first quarter instead of rising because investors began to believe: 1) Inflation and supply chain disruption may indeed be "temporary", as the Fed insists; 2) The second and third quarters will be the highest points of stock returns and economic growth. Alec Young, a chief investment officer of Tactical Alpha, said: “...

Intel, Twitter, and Snapchat stock forecast 2025: latest quarterly earnings reports

Three technology companies, Intel, Twitter, and Snapchat, released their latest quarterly earnings reports. Let's take a look at their performance and the key information revealed at the earnings conference. Intel(INTC) stock forecast 2025 Several important data on Intel's earnings report beat expectations. Among them, earnings per share were US$1.28, higher than the expected US$1.06, an increase of 12% over the same period last year; total revenue was US$18.5 billion, beating analysts’ expectations of US$17.8 billion. However, in Intel's guidance for the next quarter, the Non-GAAP gross profit margin given is only 55%, which is far lower than the market's expected 59.2%. The reason given by Intel is that it is worried that supply chain problems will limit profitability, and the expected chip manufacturing business will bring additional costs. For chip companies, the market is most concerned about gross profit margin. TSMC fell last week b...

How to judge the market entry signal?

buy sell Most people lose money when investing in stocks. One of the biggest reasons is that they buy stocks at the wrong time. Why did they buy the stock at the wrong time? Facts have proved that many people do not know that stocks only rise 1/4 times, and that is the easiest time to make money. And in another 3/4 of the time, making money is difficult, and losing money is easier. Today, I will share how to choose the right time to buy stocks. I hope you can see the final result because, in the end, I will share with you how to use simple technical indicators to help us find the exact input time. First of all, everyone must know a concept, whether it is a stock market or a stock, there are four stages. Let us take the stock market as an example. The first stage is called the "next stage". At this time, the market has just experienced a sharp decline, and most investors in the market are not interested in the stock market, because their memories are still stuck in t...

NIO and Tesla(TSLA) stock forecast 2025: released important news

In the past two days, two electric vehicle companies, NIO and Tesla have released important news. However, the market gave mixed reactions, one rose and the other fell. Let's take a look at what happened. To NIO stock forecast 2025 Let me talk about NIO first. NIO announced this morning that the company will issue additional shares totaling US$2 billion. The price of the additional issuance will be based on the current market price, and the timing of the issuance will be determined according to the company’s needs. It may be a one-time sale or a share. Wholesale sale. After calculation, this will cause about a 3% equity dilution for existing shareholders. However, the market seems to have given more interpretation. Today, NIO's share price has fallen by 6.3%, which is more than twice the theoretical dilution. To From the prospectus, the company only stated broadly that the funds raised will be used to strengthen its bala...

AMD stock forecast 2025: Q2 is expected to perform strongly

Before the US stock market on July 19, US technology stocks continued their decline last Friday, and AMD's stock price also continued to fall. AMD will announce the results of the second quarter of 2021 on July 27. The market expects this performance to be strong, so this round of decline may be a great opportunity to buy the stock. financial indicator Due to the strong market demand for CPU and graphics cards in 2021, AMD’s revenue is expected to exceed the maximum value of the financial guidance. AMD’s C&G business is expected to grow the most because higher-priced AMD Ryzen and high-end AMD Radeon sales continue to increase. In terms of gross profit margin, the market expects AMD's gross profit margin in Q2 2021 will increase by 47% year-on-year. If the average selling prices of CPUs and GPUs continue to rise in Q2 of 2021, and the ASPs of CPUs and GPUs will increase in Q1 of 2021, the gross profit margin may also increase by 48%. CPU market sh...

Cloudflare's 4Q 2021 earnings report

Just took a look at Cloudflare's (NET) 4Q 2021 earnings report. Cloudflare is in an area that covers several hot spots, including content delivery networks, i.e. CDNs, cloud computing, and cybersecurity. For the Cloudflare quarterly report, here is a summary: 1) Revenue of $194 million (then expected 4Q revenue in the range of $184 to $185 million), up 52% year-over-year ($172 million in 2021, up 51% year-over-year). 2) The number of customers continues to grow rapidly, with the total number of customers has reached 1416 (1260 in the previous quarter). 3) Non-GAAP gross margin was 79.2% vs. 78.1% in the same quarter last year (vs. 79.2% in 3Q vs. 77.3% in the same quarter last year.) Non-GAAP net income has started to turn around, meaning it has started to be profitable. 4) Revenue is expected to be in the range of $205 to $206 million in 4Q. That works out to about 6% YoY growth. Cloudflare had good results this time, beating its previous guidance. Revenues are still growing at a...

4 George Soros advice to investors!

Who is George Soros? George Soros is a Hungarian-born Jewish businessman. It is one of the most influential investors in the world. In 1969, the Double Eagle Fund was established for Arnhold & S. Bleichroeder, an investment management company. In 1973, Soros and his assistant Rogers left Bleichroeder to co-found Soros Fund Management. In 1979, the well-known Quantum Fund was established and continued to make profits. In the Asian financial turmoil in 1997, George Soros sniped the Thai baht and the Hong Kong dollar, which was frightening. Learning from the experiences of successful people can benefit a lot. Here are 4 tips George Soros gave investors. First, to be successful, you must have ample free time. Most people want to be rich, but not everyone realizes the importance of free time. Many people spend a lot of time working to accumulate wealth, sleep, and forget. Set the goal to complete the work indicated by the superior, or the needs of business partners. But they hav...

AMZN stock forecast 2025： Amazon's main advantages

On July 6, after the US stock market opened, Amazon broke through $3,600, a record high. Amazon has been oscillating between 3000-3500 US dollars in the past year, and the stock price finally broke through. Amazon is a stock that has a high valuation from PE but is seriously undervalued by the market from the perspective of its development prospects. It is one of my favorite technology stocks. Amazon's main advantages are: 1. Amazon's current GMV is only half that of Alibaba. Looking at the current penetration rate of e-commerce in China and the future penetration rate of e-commerce in the United States, we will find that Amazon e-commerce has huge growth potential in the United States. Amazon e-commerce is far from saturated in the United States. 2. Cloud computing has unlimited potential. As the industry leader, Amazon's cloud computing can maintain a growth rate of 20%-30% for many years in the future. 3. The international ...

FinanceLinkway

Search This Blog