[Michael Reagan]
Breaking News From Reagan Reports for America
Republican lawmakers are voicing skepticism about passing another round of $1,200 rebate checks as they contemplate another stage of coronavirus relief legislation, [The Hill reports.]( Oklahoma Sen. James Lankford said he didn’t believe checks “month after month” were the solution, while Utah Sen. Mitt Romney called the prospect of another round of rebate checks “unlikely.” Other options eyed are reforms to the Small Business Administration’s Paycheck Protection Program, money for state and local governments, boosting Social Security benefits, and fixes to previous COVID-19 relief bills.
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Dear Reader,
News reports of the deadly coronavirus spreading across the globe have created fear and elevated concerns all over the world. It has pushed 10-year Treasury yields to record lows and the Cboe Volatility Index (VIX) to the highest level since the Great Recession. The resulting panic triggered the Dow's largest one-day point drop in history, pushed all three major U.S. indexes into correction, slammed global markets, and singlehandedly crimped economic growth forecasts around the world.
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As if COVID-19 weren't enough, along with "expert" opinions that conflict with one another, and a lockdown that has given us depression-era levels of unemployment, the US government has now entered a red zone of debt that will plague us even after the coronavirus is just a bad memory.
In the current quarter the US Treasury will have to borrow an unprecedented $3 trillion just to keep operating. Altogether for fiscal year 2020, the US is on track to add $4.5 trillion in red ink. That's more than it borrowed in the previous five years combined!
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Experts warn your 401(k) or IRA could be at SERIOUS risk. The Dow Jones finished its worst quarter since the crash of 1987 and the steepest first-quarter decline in the blue-chip index's 135-year history...
If that doesn't get your attention – what will? The disruption, fallout, and long-term consequences of the virus could upend supply and demand, paralyze the manufacturing sector, spike unemployment, overwhelm health resources, exacerbate consumer and corporate debt, and dramatically increase uncertainty. And to make matters worse, the Fed can do little to help after slashing rates to near zero on Sunday. They are, as many experts maintain, "Out of Ammo!"
What about all those IRA's, 401(k)'s, pensions and retirement plans? History has proven there is scant refuge from speculation, risk, and all out panic.
"The worst was yet to come, for germs would kill more people than bullets. By the time that last fever broke and the last quarantine sign came down, the world had lost 3-5% of its population." Charles River Editors, The 1918 Spanish Flu Pandemic: The History and Legacy of the World's Deadliest Influenza Outbreak
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Much like the virus itself, we've never been here before and there is uncertainty around every corner. The world's largest and wealthiest companies, the safe and profitable stalwarts of industry, are issuing warnings and exuding somber tones which underscore the truth about all pandemics – that nothing is safe and no one is immune.
Goldman Sachs, however, has identified one asset class that it deems virus resistant. Gold has earned its reputation as a safe haven precisely because of its history of holding its value during the most volatile episodes in human existence which include world war, global disasters, international catastrophes, and out of control pandemics. "While so much about the current environment remains unclear," said Goldman's head of global commodities, "There's one thing that isn't: gold, which – unlike people and our economies – is immune to the virus."
Gold continues to dramatically outperform other safe havens in 2020 and has now officially become, "The currency of last resort."
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Amid all of this uncertainty, gold has once again become the center of the investing world. It is a universal hedge against unilateral risk and a coveted safe haven for central banks across the globe. Gold set 6-year highs last year, and its strength has been fueled by the converging forces of slowing growth, lax monetary policy, and financial risk. It is an apolitical asset that protects wealth in every economy, on every continent, and in every currency.
Gold is now perfectly positioned to be the global apolitical asset that the world will embrace to protect universal wealth.
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In 2020--- retirement accounts, savings accounts, and financial portfolios will be at the mercy of global turmoil and dramatic political change. And, this the moment when gold shines brightest.
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It's easy to let it ride --- to hope that the markets rebound, trade tensions ease, the expansion continues, politics turn friendly, and none of the world's geo-political hot spots flare up within the year. But we've also made it easy to be informed, and it will cost you absolutely nothing.[Get your Free Playbook Now](
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