On his recent trip to London, trader Michael Hampton discusses gold, the stock market and the financial outlook.
Good news … though he sees a correction in the short term, Mike is bullish about gold and gold stocks.
Hampton believes that the upcoming presidential election in the United States is going to an big impact on both gold and the stock market. The seasonal cycle calls for a correction in the gold market in October that could result in a significant low as early as this week. Once that’s out of the way Hampton expects a pretty decent upside move in the gold price.
The four-year cycle in gold indicates that the year after the US elections on average sees a doubling of the gold price.
His outlook for the stock market is not as bullish , as the liquidity injections of central banks seem to have a diminishing impact after each additional round. Therefore owning call options on gold or gold shares versus puts on stock indices could be an interesting trade.
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