10 Predictions For 2019 – Gold, Bitcoin, Trump And More

I don’t really believe in palm readers and crystal balls and tarot cards, but I respond to the need for them. – Stephan Jenkins

I skate cautiously on the thin ice of making predictions and realize its a fool’s errand. But people love to read them and I usually get a few correct along the way.

Here are my 10 predictions for 2019:

1) Stocks bounce in early 2019, but continue to slide lower throughout the year as the U.S. slips into a Recession and pulls down global markets with it. The S&P 500 falls below 2,000, the FED is forced to halt rate hikes earlier than expected and may even reverse course and lower interest rates in order to stop the bleeding.

recession gold bitcoin

GSB Portfolio Action: Edge into oversold growth stocks in the near term. Ride the bounce and then take profits before the next rate hike cycle begins.

2) The U.S. dollar rally fizzles as trust wanes in the world reserve currency and the ability of the U.S. government to repay its debts. The USD index fails to climb back above 100 and instead drops to a new multi-year low below the 88 level.

GSB Portfolio Action: Increase exposure to asset classes that run inverse to the U.S. dollar.

3) Gold and silver continue the late 2018 trend, with prices pushing higher throughout 2019 on safe-haven demand. Gold climbs above $1,500 per ounce and silver climbs above $20 per ounce.

GSB Portfolio Action: Add to physical bullion positions in both gold and silver during Q1. Add aggressively on a break in the gold price above $1,365 resistance.

4) Mining stocks offer powerful leverage to the gains in gold and silver, with the VanEck Vectors Gold Miners ETF (GDX) advancing by more than 3 times the advance of the gold price and the VanEck Vectors Junior Gold Miners ETF (GDXJ) advancing by more than 5 times the gold price.

GSB Portfolio Action: We recently added a gold miner that has climbed 10% in the two weeks since we bought shares. We will be looking to add two more gold and silver miners in early 2019, with a focus on explorers that have recently made game-changing high-grade discoveries. We are also targeting a royalty/streaming company that has exposure to a gold explorer that just made one of the largest discoveries in years.

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Disclaimer: I am not an investment advisor. This is just my personal opinion. Invest at your own risk.

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