Posted January 09, 2023
By Matt Insley
Best Asset Class for A Bear Market Surprise
Last week we highlighted the “overwhelming consensus” that stock market pain will get worse before it gets better.
So have we reached peak bearishness? After all, turnarounds in market sentiment come when participants have moved to far to one side.
The fact is, as bad as economic fundamentals look, sentiment hasn’t been as bad as you might guess.
CNN Business’s Fear and Greed Index showed overall market sentiment was slightly bullish for all of November and the first half of December. After dipping into “Fear” territory to start the new year, the needle has moved back to “Neutral,” as stocks rallied on Friday.
Here’s how JP Morgan’s Mike Wilson summed up the mood this week:
"Actually talk to people... they're not that bearish. They're not really saying it's that painful. What they're saying is, 'We're going to go back & test the lows of 3600, & then we're going to rally back to 4000 or 4200 or whatever their number is for year end.’
“Everyone is starting to wonder how this view could be wrong,” he said. His take? Investors are in for a surprise drop of as much as 22% for the S&P 500.
My job is to make sure investors reading The Rundown aren’t surprised and to share some advice like this for how to prepare…
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Your Rundown for Monday, January 9, 2023...
Start buying some physical gold now, Paradigm Editor and long time precious metals industry insider Byron King says.
“Don't go out and load up the truck with it. But you should have a plan over months and years to buy some… it's part of the balance sheet. It's generational wealth. And in terms of the downside risk, gold goes up, gold goes down. But from where it is now, I feel very protected.”
“Even last year,” Bryon notes, “gold held its own in a year when a lot of other asset classes were down.”
The question that we get a lot is what type of physical gold is the best way to go.
“I've been doing this for 25 years and you’ve got to be careful. When I say you ought to own gold, I mean gold bullion… Don't start getting into these numismatic coins. Be careful of people who are saying, ‘oh, you buy this rare coin from 1908.’ Don't worry about that stuff.”
The markups you pay when you’re pitched collectible gold items, he warns, could have you paying way above the spot price.
“But it's important to at least make a start in this. And if you're new to it, you're new to it, that's okay... Your children, your grandchildren should be glad you’ve made the move.”
Where can you stock up on bullion?
There are many reputable dealers. One place that Paradigm Press has an association with is Hard Assets Alliance. Jim and the whole team vouche for this group as a good place to buy and store gold. If you want to have bullion, Hard Assets Alliance is a great place to do that.
Full disclosure? Our firm partners with Hard Assets Alliance, so you can assume we take a small cut of any purchases. But prices are among the best in the business.
Market Rundown for Monday, Jan. 9, 2023
The S&P 500 is up 0.8% Monday morning as Friday’s rally continues into this week.
WTI Crude oil has jumped 3.02%.
Gold is up 0.47%.
And Bitcoin continues its rally, up 0.92% to $17,280.
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