Black Friday is next week which officially kicks off the festive season so we’re inching closer to the most wonderful time of the year – and as an investor, there’s an unexpected festive treat about to be unwrapped in the form of an excellent window of opportunity to buy now, according to industry analysts.
Precious metals expert KC Chang of HIS Markit says the holiday shopping season isn’t just a great time to stock up on presents; he expects the shopping surge that traditionally happens at this time of year (last year’s Black Friday weekend was the largest online shopping event in history) to shore up investor confidence and present us with low gold prices in the run up to Christmas before the January surge.
This is great news if you want to buy now and a perfect opportunity to add to your portfolio ahead of 2020 as the main drags on the economy, such as the US-China trade war and manufacturing sector stagnation will remain in play longer term. The temporary feel good factor the markets will experience as shoppers hit the stores won’t last though so take advantage now while you can.
Chang says, “While investors may remain anxious with regards to US-China trade policy, the recent US interest rate cuts and monetary policy stimulus from other central banks will ease financial market conditions in the coming quarters.”
In its latest market report, ISH Markit doubled down on this, explaining, “In 2020, tighter labor markets will result in a slower pace of hiring and consumer confidence is likely to recede from its elevated level as economic growth and the stock market cool. Tariffs could begin to bite as well, eroding consumers’ willingness to spend.”