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Flash Alert! Stocks Slide and Gold Climbs

After tumbling 831 points yesterday, The DJIA did it again and fell more than 600 points, briefly dipping under 25,000 this afternoon. However, it clawed back to 25,052 to close out the day. That is more than a 546-point loss. We haven’t seen these levels since February. Just like that, in two days, the DJIA has lost most of the year’s gains. The S&P 500 has also fallen and closed lower each of the last 6 days.
On the other side of the pendulum, gold climbed back up over the $1200 bench mark making back $30 dollars today.
Some analysts thought that gold might also take an initial hit with the market to cover margin calls, but it did the opposite, it near-perfectly countered the DJIA loss with its own gain. This is a great indicator that gold has met its floor and for lack of better terms, can only go up from here.
The VIX is also up 10% indicating the market is becoming more fearful. I understand why, we are due for a healthy market correction, and everyone knows it. However, no one can be sure when it is going to hit. Prices may continue in this fashion or they may bounce back. Only time will tell.
As advisors we are supposed to act as fiduciaries, take that role seriously and let your client know today about the advantages of having gold and silver in their portfolios for wealth protection. As we saw today it is a great hedge to other assets that are exposed to the market. Call today for more information on how to equip your clients with wealth insurance to protect their legacy on volatile days, like today.