Market insights and analysis

How dynamic, risk-managed investment solutions are performing in the current market environment

2nd Quarter | 2022

Market insights and analysis

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Updates on how dynamic, risk-managed investment solutions are performing in the current market environment.

Last week, gold prices broke down through the year’s lows. The metal closed the week at $1,736.50 per ounce.

Historically, the engine of job creation in the U.S. economy has been small businesses. But a recent survey from small-business networking site Alignable.com reveals that this section of the economy is headed for a severe slowdown:

“Alignable’s Small Business Inflation Poll, conducted among 5,268 randomly selected small business owners from 5/7/22 to 5/22/22, shows that 51% are concerned skyrocketing inflation could force them to close their businesses within the next six months. …

“… The majority of poll respondents say inflation has had a more negative effect on their businesses than what COVID inflicted. When asked what has been more damaging, COVID or inflation, 60% said inflation has been worse. Only 20% said COVID caused more issues.”

This survey indicates that a significant slowdown in job creation is coming by the end of the year. Add in the Federal Reserve’s belated interest-rate hikes, which were rushed in to fight inflation but will also slow the overall economy, and we could be looking at a deep recession.

Investors may want to consider increasing their allocation to gold, which has historically been a “safe haven” asset for investment portfolios during difficult times.

Rick Andrews is president of Avant Capital Management.



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