Don’t Be Fooled
It seems that everywhere you look these days, people are talking about how well the economy is doing. In fact, recent GDP data does point to further economic strength, and the Fed has even stated that it still plans on moving forward with additional rate hikes. Stocks continue to reach fresh all-time highs, and investor appetite for risk remains quite robust.
There comes a time in every bull market, however, when investor complacency reaches levels that warrant a significant correction or even reversal in the market. Such a time could already be upon us or quickly approaching. Volatility remains extremely subdued and stocks have shown no real signs of reversing course. North Korea even fired off another missile test yesterday, and markets are showing little to no reaction.
If that isn’t a sign of complacency, what is?
It is times like this where savvy investors can stock of their holdings (no pun intended) and make decisions about their holdings going forward. While the possibility of further gains in risk assets does exist, that possibility is a whole lot less important at this point than the possibility of a major market collapse or reversal.
As the saying goes, markets tend to take the stairs up and the elevator down-and this time around will likely be no different. Take a look back at the amount of investor value that was wiped out during previous crashes. 2008/2009, the dot.com bust, the crash of 87. Markets have shown time and time again that they have the power to evaporate significant wealth in the blink of an eye. Only a fool can ignore such tendencies.
This is not to suggest that stocks, bonds or other such assets do not have a place in a portfolio. They certainly do. What it does suggest, however, is that there is also always a place within a diversified portfolio for asset classes that can provide meaningful benefits outside of strictly price appreciation. Assets like physical gold, for example, not only have the potential for a significant increase in value, but can also potentially provide other benefits. Gold may act has a meaningful hedge against inflation, deflation or weakening paper currencies. It should not only be a part of a well-diversified portfolio, but should be one of its backbones.
Adding this key asset class to your holdings has never been easier than it is today. In fact, you can even harness the tax-deferred power of an IRA account to make it an important component of your overall portfolio. It does not require a trip to the bank, or the need to secure and transport metals yourself. In fact, all that is required to get started is picking up the phone.
Speak with an Advantage Gold account executive today about the potential benefits of gold ownership. Our associates are here to answer any questions you may have, and can seamlessly guide you through the process of adding this important asset class to your holdings using an IRA account.
Don’t ignore the writing on the wall and don’t be fooled again. At some point, the equity market party will once again come to an end, wiping out billions in shareholder value in the process. Explore your options for alternatives today. Call Advantage Gold at 1-800-341-8584 to get started now.
Tags: advantage gold, bull market, gold, north korea, stock market, stock market collapse, volatility