According to analysts, a very large correction in the financial markets may happen amid the US presidential elections, which will be held on November 3, 2020. The correction may reach 25%. Investors will keep their savings in cash, as uncertainty may arise after the announcement of the election results.
Analysts are more than confident that the financial markets will soon face a round of sell-offs. Experts do not advise to open long positions, especially related to stocks. If it happens, then the correction will affect all types of assets, including gold and cryptocurrencies. The best solution in such a situation would be to divide the investment portfolio into three parts. 33% is for cash, 33% is for stocks and another 33% is for gold and cryptocurrencies.
The world's economy has not yet recovered from the global lockdown caused by the coronavirus pandemic. In addition, many experts say that the negative consequences of COVID-19 in the economy will be visible for several more years.
Moreover, many countries are mired in debt. They have nothing to fill state budgets with in order to fulfill social obligations. So, what is left? Of course, printing money unprecedentedly. As a result, inflation will rise in the long term. In the worst case scenario, hyperinflation may happen. Now, this process has just begun, experts warn.
Renowned investor and precious metals market analyst Jim Rogers is confident that gold and silver have great growth potential. This is evidenced by a noticeable influx of new investors who buy these precious metals. In addition, it is much safer to have assets in gold and silver. The expert is sure that the central banks will not stop printing money. The result will be sad. Therefore, he does not exclude the beginning of a new Great Depression.
Meanwhile, today gold has risen in value again. Gold futures rose by 0.11% to trade at $1,897.65 per troy ounce. Silver also showed a positive trend, climbing by 0.72% to settle at $23.663 per troy ounce. Copper also grew by 0.50% to $3.0375 a pound.
