The Stock Market Crash of 2022

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As a concerned citizen, you’ve noticed the US stock market index shows a fairly steady decline since January 2022. Most investors have set up their life savings in a retirement fund (or two) that rely heavily on the success of the stock market. While regular and ongoing corrections and crashes based on global equity, capital, and commodity markets are actually normal, this year is different! The S&P 500 in 2022 is currently down by 20-30%. Analysts also predict a greater stock market plunge in 2023. There is typically a stock market crash about every 15 years, and this year seems to reflect the next one.

Impacts of the Stock Market Crash

The definition of a typical stock market crash is quite simple according to Investopedia: it is a rapid and often unanticipated drop in stock prices. A stock market crash is the correction or realignment in the value of stocks. A correction is based on national stock indices that see certain stocks as overvalued, which in turns leads to a sell-off. This year, investor fear and a lack of investor confidence are both playing a huge role in the continuing stock market selloff. Examples of the current psychological impact include:

  • iStock 1139982817Investors are panicking as the stock market crashes and their reactions are leading to devastating financial mistakes.
  • Negative but true news is being spread by the press and social media outlets are leaving investors in a position where the facts are hard to find. It is difficult to assess strategic stock reporting.
  • Herd mentality has set in as investors move their money—not to an advantage. A simple diversification may be the best choice.

When people understand the stock market crash, better decisions are made in terms of the best long-term financial strategy.

Why Is The Stock Market Crashing

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The stock market is crashing in 2022 based on a number of conditions. The main condition today includes a lack of institutional regulation and risk management as well as the theories about the lowered value of money. The 2020-2021 pandemic and associated stimulus payouts kicked off the current crash, but the following are key contributors in today’s stock market decline:

  • The Fed’s raising of interest rates
  • State of inflation / outrageous cost of goods and services including fuel
  • The printing of money
  • A multi-trillion dollar US balance sheet
  • Fluctuating property and equity bubbles (due in part to stimulus money)

Today’s rising interest rates and inflation are the key contributors to our serious stock market decline. Also consider 12+ years of low interest rates that in turn made yields on government bonds nearly zero. Extra capital was invested in equities and property resulting in housing bubbles across the nation. Given all of these risk factors, which are undoubtedly real, a stock market crash is upon us.

Foreign Entities Impacting our Markets and Our Money

Along with the serious conditions surrounding today’s stock market crash, there are also a variety of foreign threats and theories regarding our US money. The Great Reset as put out by the World Economic Forum is a perfect example of world and financial dominance. There are also many threats to the US by other countries, and any potential conflicts will certainly impact the stock market and our currency. It’s a great time for investors to get informed and take action.

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What Should Investors Do In A Stock Market Crash

Historically, when the stock market is crashing, we see gains in gold. The reason is that gold, much like other commodities such as oil, fuel, copper, tin an even coffee, increase in price and therefore increase in investment value. In times of decreasing stock values investors revisit their financial portfolio mix. When personal investments are going down in value, it’s a good time to seek additional assets that are not impacted by the risks above. These assets are often precious metals that are not impacted by devaluation. Risky stock investments may be replaced or at least supplemented with safe, less volatile alternatives for a more diversified portfolio.

During a period of crisis, investors find the perfect window in which to look at risk tolerance. It’s simple to measure the amount of money lost in a day or a month, which prompts investors to re-evaluate portfolios. Contact Reagan Gold Group (RGG) today to review your financial portfolio while the markets continue to be down. It’s the perfect time for the right advice to protect your assets and diversify your financial portfolio.

Learn how a Gold, Silver, & Precious Metals IRA can help you hedge against inflation

The Collapse of Fiat Currency Is Gold’s Moment to Shine.

A dramatic transformation is unfolding in the financial landscape, as gold reclaims its position as the ultimate safe haven. Amid growing economic uncertainty, the U.S. dollar has lost over 40% of its purchasing power compared to gold in just the past year — a staggering decline that signals deepening erosion of confidence in fiat currencies.

Yet, despite this dramatic devaluation, the story has not made the headlines it deserves. This speaks volumes about the growing disconnect between financial reality and public awareness, as gold sees a remarkable 23% increase since the start of 2025, proving its resilience in an increasingly unstable global economy.

In a recent PBS article, reporter Bernard Condon says that economists fear that the recent drop in the dollar is so dramatic that it reflects something more ominous — a loss of confidence in the U.S.

“The safe-haven properties of the dollar are being eroded,” said Deutsche Bank in a note to clients earlier this month, warning of a “confidence crisis.”

Investors Turn to Gold as Fiat Fears Mount

For global investors, the message is clear: the dollar is no longer the unchallenged cornerstone of financial stability. With persistent inflation, record-breaking debt levels, and growing geopolitical uncertainty, many are opting for the tangible security of gold.

“Since 2023, gold’s gone from $1,800 to $3,400 an ounce,” Forbes Media Chairman and editor-in-chief Steve Forbes told Fox Business. “That’s a sure sign we’re going to have a weak dollar ahead, which means, ultimately, turbulence and higher prices in the marketplace. Just look at the 1970s, and we can see where that leads unless something is done about it now. But I don’t see any sign that the authorities have any idea, constructively, of what to do, sadly.”

According to Bank of America’s most recent Global Fund Manager Survey, a net 61% of participants anticipate a decline in the dollar’s value over the next year — the most pessimistic outlook of major investors in almost two decades.

A CNBC article published on April 21 highlights an even more worrying trend. As the U.S. dollar weakens, other central banks may be forced to devalue their own currencies just to stay competitive. This “race to the bottom” in global fiat currencies could ignite even more inflationary pressure worldwide, making gold all the more appealing for investors who want out of this volatile spiral.

Global Currency Devaluation May Be Just Beginning

The exodus from U.S. assets also shines a light on the broader crisis of confidence, with potential spillovers such as higher imported inflation as the dollar weakens. The drop in the U.S. dollar has prompted other currencies to appreciate against it, especially safe havens such as the Swiss franc, Japanese yen, and the euro.

This is no mere market correction or cyclical fluctuation. As Bloomberg Intelligence’s Mike McGlone and many others have noted, we’re in the middle of just the fourth-ever capital rotation event — a strategic shift of investments across asset classes, sectors or regions in response to market conditions, economic cycles, and performance trends. “Gold is now the most expensive ever versus the U.S. long bond market,” he observed, pointing to deep structural issues in the American economy and financial system.

Meanwhile, central banks around the world are bolstering their gold reserves at record rates, a move that signals long-term distrust in the global fiat system.

“Global trust and reliance on the dollar was built up over a half century or more,” University of California, Berkeley, economist Barry Eichengreen told PBS. “But it can be lost in the blink of an eye.”

As the dollar falters, gold is reclaiming its historic role as the foundation of monetary confidence. For investors seeking real, enduring value, the message has never been clearer: the future is golden.
“Gold is clearly seen as the favored safe-haven asset in a world upended by the trade war,” Nitesh Shah, commodities strategist at WisdomTree, told Reuters. “The U.S. dollar has depreciated and U.S. Treasuries are selling off hard, as faith in the U.S. as a reliable trading partner has diminished.”

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Gold Breaks $3,300: Experts Say $4,000 Is Now in Sight

Gold soared past the $3,300 mark on April 16, once again shattering an all-time high as investors and retirees continue to seek safety amid growing global uncertainty. The precious metal climbed more than 6% in the last week and is up over 25% year to date, fueled by escalating U.S.–China trade tensions, a faltering dollar, aggressive central bank buying and recession fears.

“Gold is clearly seen as the favored safe-haven asset in a world upended by the trade war,” Nitesh Shah, commodities strategist at WisdomTree, told Reuters. “The U.S. dollar has depreciated and U.S. Treasuries are selling off hard, as faith in the U.S. as a reliable trading partner has diminished.”

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New Tariffs Crush the Stock Market: Why Gold Is the Safe Haven You Need NOW

The stock market was already beginning to crumble this year under the weight of inflation, economic uncertainty and the threat of global war. But since the latest tariffs went into effect on April 2, the stock market has been dealt yet another devastating blow — while gold continues to stand strong and see record stability.

On April 4, the S&P 500 fell 291 points (5.4%) by the afternoon, while the Dow Jones tumbled 2,150 points (5.3%) and the Nasdaq slid 5.8%. The free-fall carried over from the previous day, when the indexes recorded their biggest one-day drop since 2020, with $2.5 trillion in investor wealth being erased from the S&P 500. The Dow and S&P 500 each sank more than 4%, while the tech-heavy Nasdaq plunged nearly 6%.

Despite these incredibly uncertain times, gold is up nearly 3% over the last month, while the S&P 500 is down over 13%. This stark contrast highlights gold’s resilience as a safe-haven asset when traditional markets falter. As investors scramble for stability, the surge in gold prices continues to underscore its long-standing reputation as a reliable store of value in times of crisis.

The Impact of Trump’s Tariffs on the World

The latest tariff announcements include steep levies on key imports, particularly from China, the European Union and Mexico. In response to Trump imposing 34% tariffs on Chinese goods — which were already subject to a 20% levy — China hit back on April 4 with a 34% tariff on all U.S. products starting on April 10.

This comes after Canadian Prime Minister Mark Carney said that Canada will match Trump’s 25% auto tariffs with a tariff on vehicles imported from the United States.

“We take these measures reluctantly — and we take them in ways that is intended and will cause maximum impact in the United States and minimum impact in Canada,” Carney said.

One of the most concerning aspects of these tariffs is their inflationary impact. Higher import costs will translate to rising prices for goods, squeezing American households already burdened by inflationary pressures. Companies facing higher production costs may either pass expenses onto consumers or cut jobs to maintain profit margins — both scenarios spell trouble for economic stability.

Gold’s Surge Amid Market Chaos

Historically, gold has served as a hedge against economic uncertainty. In today’s uncertain and scary times, that has been rang more true. While equities crumble under the weight of trade tensions, gold has surged by more than 12% since the start of the year, while the S&P 500 has plummeted by over 15%.

Gold’s appeal lies in its independence from government policy and currency devaluation. Unlike fiat money, which can be manipulated through monetary policy, gold maintains intrinsic value, making it a trusted store of wealth in times of crisis. With fears of a prolonged trade war and potential stagflation on the horizon, investors are ditching the uncertainty of stocks and moving their hard-earned capital into tangible assets.

Why Investors Are Turning to Gold

With global instability accelerating, more investors are seeking protection — not speculation. High-risk assets like stocks are increasingly vulnerable to sudden shocks, policy changes, and economic downturns.

While stock traders brace for more volatility, Deutsche Bank, one of the world’s leading financial services providers, is looking beyond the panic — and betting big on gold. The bank just raised its average price forecasts for gold to $3,139 for 2025 and $3,700 for 2026, signaling strong long-term confidence in the precious metal.

“We conclude that the bull case for gold remains strong despite this week’s correction and further upgrade our year-end forecast to $3,350/oz.,” the bank said in a statement on April 7.

This shift reflects a growing recognition: gold isn’t just a hedge, it’s a foundation for financial security. In times like these, where headlines shift hourly and markets react in real time, gold remains a steady and trusted asset.

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