Warnings embedded in strategist price targets and historically low U.S. stock volatility are doing nothing to dissuade hedge funds.

Signs of cracks in the U.S. economy are breathing new life into gold bulls after the metal posted a rare August drop. The Institute for Supply Management’s economy-weighted manufacturing and non-manufacturing composite index plunged the most since 2008, prompting a retreat among traders betting the Federal Reserve may raise borrowing costs this month. That sent non-interest-bearing gold to its steepest climb in more than two months.

What strategies should investors employ to build their wealth without drawdowns? Why are Wall Street banks getting crushed by Fed policy? How do savvy invest...