We are already witnessing a negative New Zealand Dollar (NZD/USD) rate due to over $300 billion of foreign currency hoarding from foreign investors in China, and countries that have become less supportive of the US dollar. This includes Japan and China’s trading partners that are not letting the US economy grow unchecked.
There is speculation that the US will change their currency policy back to the “Gold standard” if this problem is not resolved soon. But other analysts warn that if the Asian countries do not come to the negotiating table soon, the exchange rate may fall further due to the same reasons for over 30 years.
As you can tell, the entire market is expecting the US will be forced to go back to the gold standard if the pricing of currencies continues to be bad. Many traders use the process of following the trend in the current stock market and keep their trades in either the “right” direction. This is what I do and have been doing since 1998 when the trading began.
We have been following the eikon update and we see a weakening dollar and a push for the gold standard. We also see a correlation to the trend of the U.S. Dollar (USD) I also believe if the trade deal goes through, the overall trade deal would be a win-win situation for the US, Canada, China, and Australia.
So, just yesterday, I researched the metals and the US Dollar (USD) many analysts are waiting to see how the trade deal would look like. What I found is that the metals would be more in line with the overall momentum of the USD (USD) as opposed to the real estate market, which is the last thing you want to see with a weak dollar.
But, I do see the red hot metals market moving lower, and a transition from assets to currencies. And here is where the country’s stock market reverses its direction.
In fact, the spot gold price is slightly in line with the trend of the “Dow Jones Industrial Average” (DJIA) at around $1,260 and with the “S&P 500” at approximately 500. I see gold going lower, and being in line with the DJIA, which is where it was in January and February when the DJIA trend began to reverse. And I believe the Canadian dollar will move into the black metal, which is where it should be.
We also see the US Dollar (USD) strengthening and the two other G-20 nations, Japan and Canada, falling towards the combined total world currencies, which may allow the Canadian dollar to overtake the USD (USD). This is now a powerful reversal from the current USD to the CAD. As the price of the Canadian dollar drops, the real estate markets is down as a percentage of the economy, and it is because of the interest rate decline.
Meanwhile, global financial indices are picking up. The real estate market continues to be impacted by the trades and we are seeing buyers looking to build homes in vacant land that can only be used as multi-million dollar estates.
The next move would be to sell or exit or to consider increasing the shares of stock in your companies. The key factor is if you have some good companies that are growing the new “growth stocks” that are not based on large amounts of debt.
I suggest you sell this real estate and look to the commonwealth bond fund. You will save thousands, if not more.