Ron Paul Says Buy Gold, 50% Stock Crash to Come
The comments below are an edited and abridged synopsis of an article by Investing Strategies
Some say we are in a roaring economy looking for continued growth, especially considering how low interest rates are. But retired Kentucky congressman and one-time presidential contender Ron Paul says we’re in a big fat bubble that’s about to pop.
One reason Paul believes the equity market will decline is the Federal Reserve’s quantitative easing (QE) program, which pumped massive liquidity into the market. All that cash has fueled significant bubbles, Paul believes. He thinks stocks could fall 50% from current levels.
Paul’s comments came as the Dow started May in the red, and a potential correction was on the horizon.
Stocks have been volatile since the start of 2018. The S&P 500 is slightly negative year-to-date through Friday’s close. Even though stocks are under pressure, Paul thinks the stock market is still too pricey.
Paul argues that due to growing deficits, the stock market isn’t getting stronger. Rather, prices are artificially high.
Paul likes gold as a safe haven, and he sees major potential in expanding exposure to the metal given current market conditions.