Obamacare Vote

The stock market has been riding high since the Donald Trump Presidential election victory. Stocks have been moving higher and higher as interest rates rose and gold tumbled.

Gold has rebounded strongly, however, and stocks appear to be at a crossroads currently. The stock market is having its work week since November, and recently saw the first down day of greater than one percent since October. In fact, equities appear to be in the midst of a breakdown from their recent trading range, and more downside could potentially be seen.

Friday’s non- vote on the Affordable Care Act, otherwise referred to as Obamacare, could have a significant impact on financial markets.

This key vote was originally scheduled for Thursday but was postponed by Republicans after it appeared that the party did not have the necessary votes to pass the bill to abolish the ACA.

A seemingly frustrated President Trump took a hard line regarding the vote, and essentially suggested that the vote should take place Friday or he would simply move on to other matters.

This vote is critical for two reasons: First, if the bill is passed, then major changes are coming to the nation’s health care system.

Secondly, if the bill is voted down, (which it essentially was) it could call into question the administration’s ability to get its agenda implemented. Stocks have climbed significantly since the Trump victory on the idea of an Obamacare repeal, lower taxes and massive fiscal spending.

If the administration is not able to get the ACA repealed, it would represent a failure to implement change on a key issue that the campaign ran on. This could potentially make investors nervous, as it could raise doubts about the administration’s ability to get other legislation passed, including its tax reform and fiscal spending plans.

By early Friday afternoon, it became clear that the administration did not have the necessary votes to pass the legislation, and the bill was pulled.

This could potentially send stocks sharply lower, and could be the driving force behind a major shift in investor sentiment. It has been a long time since the stock market saw a major sell off, and the market’s inability to make fresh highs recently may be indicative of a top being formed in the market.

If the wheels start to fall off the equity market bus, investors may be quick to cash out, sending the market sharply lower in the process. Much of that investment capital could potentially find its way into alternative assets such as gold and silver.

If you have ridden stocks higher in recent months, great.  Now may be the ideal time, however, to consider some alternatives. As the bull market in stocks gets closer to reversing course, the bull market in gold and silver may be just getting started.

If you don’t already own physical gold or silver, now may be the ideal time to begin an allocation. Adding these metals to your holdings has never been easier.

Speak with an Advantage Gold account executive today about the potential benefits of physical gold and silver ownership. Our associates are here to answer any questions you may have, and can even show you how to buy and hold these metals using your IRA account.

Don’t wait for the next stock market crash or for the next economic crises before taking action. Explore your options today. Call Advantage Gold at 1-800-341-8584 to get started.