The Stock Market Fallacy

After seeing a decent sell-off following the June 23rd Brexit referendum, stocks have not only fully recovered, but the broad market S&P 500 is probing deeper into new all-time high territory.

After the S&P fell over 120 handles in the wake of Brexit, the market took just days to recover. Since that recovery, the market has remained on the offensive, with seemingly unstoppable forces behind it propelling it to fresh all-time highs.

This begs the question: What powers could be behind the sharp rise in stocks? Is it the Fed? Is it other central banks? Is it appetite for risk? How about astrology?

We believe stocks’ good fortune can be summed up in three words:

Lack of choice…

If you take a step back from current markets, and take a very objective look at current economic conditions, we think you will agree with our conclusion that investors simply have nowhere else to turn.

As of this week, the yield on the benchmark U.S. ten year note stood at less than 1.45 percent. Does that sound like a reasonable return to you?

How about looking to German 10 year Bunds? They are currently yielding a whopping -.12 percent.

What about the U.K. 10 year Gilt as an option? They are yielding an astounding .68 percent.

Hopefully by now you get the point. Outside of stocks there simply is no yield to be had…

Or is there?

Gold has performed well in recent months despite the ongoing strength seen in equities. Perhaps gold investors recognize something that most of the investing public does not.

That stocks could be vulnerable to a massive sell-off once other options present themselves. We are not talking about a 10 percent correction or even a 20 percent drop into bear market territory. No, we are talking about a sell-off to the tune of 50,60 or even 70 percent or more from current levels.

A sell-off that will not only wipe out several years of gains for investors, but will also destroy billions of dollars in investor wealth in the process.

Stocks at current levels are like a big game of musical chairs-and you don’t want to be left without a seat when the music stops.

Now is the time to explore other options.

Gold is potentially poised for a multi-year bull market that could potentially see prices not only return to previous all-time highs, but move well above and beyond those levels.

Years of low rates and QE are going to come to a head at some point, and when it does, look out below. Inflation could see a dramatic increase, and investors will be left scrambling for cover.

Gold can potentially serve as an effective hedge against inflationary pressures, and you have the opportunity to buy in right now at current levels before a great asset reallocation takes place.

Don’t let what could be a once in a lifetime opportunity pass you by. Learn more about the potential benefits of physical gold ownership today.

If you are nervous about your financial future and the current stock market house of cards collapsing, don’t delay. Speak with an Advantage Gold account executive now to learn more about the potential benefits of physical gold ownership, and to see how easy it is to begin allocating investment capital into this precious metal.

Our professionals can even show you how to buy and hold physical gold using your IRA account, and to help secure your financial future. Don’t wait for further increases in the price of gold, or for your stock portfolio to experience a significant decline before taking action. Call us today at 1-800-341-8584 to learn more.

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