Stocks remain not far from recent all-time highs, and you have to wonder if equity investors will keep pushing stock prices further into bubble (we mean new all-time highs) territory.
The desire for yield can be a powerful thing, and that thirst for returns has driven equities higher for several years now.
In reality, however, it is zero or negative interest rates and a lot of quantitative easing that has driven equity markets to current levels.
Investors have essentially been forced to go out and put capital at risk in equities-because there simply has not been any yield available elsewhere. While this has worked out for many stock investors over the last several years, things can and do change quickly.
With the Fed may be getting ready to potentially hike interest rates again, the era of free money in the U.S. appears to be over-for now anyway.
You then have to wonder if investors will seek out equities at current levels if there are viable alternatives with which to generate yield. We believe this would be a stretch. We also believe that many of the investors still chasing the equity rally higher are going to be in for a rude awakening.
In our view, stocks are stretched, and stretched significantly. When this market begins to sell off, look out below. The market could potentially see significant declines to the tune of 20, 30 or even 50 percent.
This means that many investors who have been riding this stock market bandwagon would possibly see all of their gains returned-and maybe even then some…
With a market that some would argue is currently way overvalued, and with so many economic and geopolitical uncertainties, now is not the time to be complacent.
If you have enjoyed great gains, now may be the time to book a large portion of them. If you have missed the stock rally, now is probably not the time to look to get in.
Other assets may potentially present a much better value at current levels. If and when the stock market bubble does get ruptured, much of that capital could find its way into hard, physical assets like gold and silver.
The question is-do you want to buy gold and silver at current prices are wait for higher prices?
These key precious metals have stood the test of time and are traded all over the world. They are recognized as a medium of exchange and carry no counterparty risk. They may potentially offer a meaningful hedge against a number of economic and geopolitical issues, and have the potential to appreciate significantly in value.
Why wouldn’t you want an asset like that in your portfolio?
Acquiring physical precious metals that you can touch and feel has never been easier than it is today. Just pick up the phone and speak with an Advantage Gold account executive today. Our professionals are here to answer your questions about physical precious metals ownership, and can even show you how to buy and hold these metals using your IRA account.
Sometimes a bird in the hand is worth two in the bush. We feel this is one of those times. Don’t wait for the next massive stock market crash before taking action. Explore your options now. Call us at 1-800-341-8584 to learn more.Tags: advantage gold, bubble, gold, interest rate hike, quantitative easing, stock market crash, stock overvaluation