Equity markets remain not far from recent all-time highs, and there seems to be an eerie sense of calm in the marketplace. The CBOE’s VIX index, commonly referred to as the “fear gauge,” is showing a reading of less than 15 currently in another sign that perhaps investors have become overly complacent.
With a Presidential election looming and a whole host of other key economic issues facing the global economy, the current era of complacency could be about to change-and rapidly.
Regardless of who wins the White House, stocks could be in for a rough ride as valuations have become stretched and the Fed gets ready to begin tightening further.
In fact, some analysts have called for a substantial drop in stocks-to the tune of 50 percent.
For argument’s sake, what would a 50 percent decline in the broad market mean for your stock portfolio?
Imagine watching five years of gains wiped out in a matter of weeks or months. That’s the type of drop that could potentially be seen.
Why could equities possibly see such a massive collapse? Well, for starters consider:
- The Fed tightening
- An ongoing slowdown in China
- The Chinese credit bubble bursting
- Uncertainty over economic policy
- Current stock valuations
- Human nature
- Expansion getting very long in the tooth
- The aging bull market
Markets go up and markets go down. That is the nature of markets.
The question is: Will you heed the warning signs and sit down before you are left without a chair when the music stops?
Unfortunately, most people probably won’t. Much of the investing public will continue buying stocks-even at current levels-and will then wonder what happened when they are picking up the pieces after a significant equity market decline.
You don’t have to fall victim to this, however.
Now is the time to consider alternative asset classes that can potentially outperform during a period of “risk-off” and market volatility. Now is the time to consider asset classes that have real, inherent value and that are recognized all over the world for this value.
Now is the time to consider an allocation in hard, physical assets like gold and silver. Assets that you can touch and hold in your hands. Assets that carry no counterparty risk and cannot default or go bankrupt. Assets that have been considered a reliable store of value and protector of wealth for centuries.
Accumulating physical gold and silver has actually never been easier than it is today. In fact, all you have to do is pick up the phone.
Speak with an Advantage Gold account executive today about the potential benefits of physical gold and silver ownership. Our professionals can show you the easiest and most convenient ways to begin building a precious metals portfolio, and can even show you how to buy and hold these physical precious metals using your IRA account.
Don’t just sit and watch as multiple years of stock gains are potentially wiped out. Be proactive. Take action. Explore your options today. To learn more, just pick up the phone and call us today at 1-800-341-8584.Tags: advantage gold, chinese credit bubble, equity collapse, gold, stock market crash, vix index, volatility