Gold could be a great very long-term investment entry to hedge against a crash of the "S&P 500" in the year 2017 and beyond, after the election of Donald Trump.
Here is my original "Gold" chart I made 5 months ago. The price of my lower entry arrow has been reached, plus the time window has been reached, which is why I publish this reminder. This chart is posted as neutral, because there is not yet enough price movement to the upside to fully confirm this entry signal, plus the time window has just started. So there could be one more dip to the downside before the actual larger rally starts later in 2017.
Ideas supporting Gold as safe haven investment in 2017 and beyond:
The new US president sleeps only 3-4 hours per night according to his butler and according to his 2004 book "Trump: Think Like a Billionaire". This lack of sleep might cause chronic sleep deprivation, with symptoms including sudden mood swings and emotional imbalance. That could lead to more stock market volatility in the future, which would benefit safe haven assets like "Gold".
Trump has appointed more military generals in his cabinet than any president since World War II. This might lead to a foreign policy that is less inspired by civilian ideas and more heavily dependent on U.S. military.
In addition the political risks around the world are increasing, as measured by the “Economic Policy Uncertainty” (EPU) index, which scans the entire spectrum of news sources each day for words indicating worry, doubt, and contingency about policy direction. This index has negative correlation with equity prices and a high positive correlation with stock market volatility. In most economies around the world, the EPU index is currently surging. A GDP-weighted average of the EPU indexes from 17 countries has recently hit unprecedented heights—higher than 9/11, Gulf War II, the GFC, or the Euro-Crisis of 2011.
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