Not only are geopolitical tensions on the rise, we are seeing a slow down of the nearly decade long bull run in the markets. Fundamental numbers continue to bode well for investors, but at some point the government is going to rip off the band aid that was saving the economy from the housing crisis, and we’ll see how the U.S. economy really is. Valuations continue to be high and consumers are spending. This is all because consumers do not fear the market or a recession.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include SPDR Gold income statement, its balance sheet, and the statement of cash flows. Potential SPDR Gold investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although SPDR Gold investors may use each financial statement separately, they are all related. The changes in SPDR Gold's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on SPDR Gold's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of SPDR Gold
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of SPDR Gold performance into the future periods or doing a reasonable stock valuation. The intrinsic value of SPDR Gold shares is the value that is considered the true value of the share. If
the intrinsic value of SPDR is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares SPDR Gold. Please read more on our
fundamental analysis page.
An Additional Perspective On SPDR Gold Shares
Gold acts as a safe haven asset because historically, it has always stored value. It is a physical object that there is a finite amount of in the world. Gold also help against inflation and is used as a store of value. During the housing crises we saw a large increase in gold prices, but it has since leveled out. Silver and other metals could be lumped into this category, but gold is the main metal.
Bonds are also a safe haven asset because they are typically backed by the government. When people fear equities, they assume safety because the government has a high probability of not failing. Now, that isn’t to say the government can’t fail, but it would have to take a catastrophic event to do so. The return on bonds right now is low, but it will offer shelter in a volatile market.
As we continue to see geopolitical issues rise and trade wars being talked about, the markets will likely proceed with caution. Large daily moves may be the new norm and for traders that works out well. Investors however may begin to rebalance their portfolio and adjust for increased volatility. Regardless of the nature of the markets, it is important to review and adjust your portfolio annually to maintain a proper balance.
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Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of SPDR Gold Shares. Please refer to our
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