Right now may be the ideal time to consider moving some assets around. Although stocks are not far from recent highs, recent price action in the equity markets could potentially be considered a shot across the bow. Investors have gotten a glimpse of market volatility-that hasn’t been seen in some time- and there could potentially be more where that came from, a lot more.
The CBOE’s VIX, a widely used measure of market volatility, remains stubbornly low. The VIX is often referred to as the market’s “fear gauge,” and with good reason. This gauge can potentially see enormous spikes as investors scramble to buy put protection.
Despite a little blip higher in recent days, the index remains relatively low. Although this does not necessarily mean that a major stock market collapse is imminent, it can potentially be indicative of investor complacency and a market that is becoming more and more over-extended.
Now consider this for a moment: More and more capital has been put to work in the equity markets in recent years as the market’s ascent has continued. Investors absolutely hate to sit by and watch the stock market climb without them. Watching the market go up without you is not easy, and most investors will eventually cave in and get fully committed to stocks.
That’s typically when the bottom falls out.
Has the stock market already reached this point? It’s hard to say. As the aging bull market gets longer in the tooth, however, the likelihood of an eventual market collapse would seemingly be on the rise.
With so much capital having poured into stocks over the last eight years, imagine for a moment how hard the market could potentially fall if much of that capital was pulled in a short period of time.
Does the phrase “House of cards” ring a bell?
Don’t bet the last investor to the party and the one left without a chair when the music stops. Be proactive and begin taking stock of your portfolio today.
Now may be the ideal time to consider alternative assets like physical gold and silver.
These metals have been considered a reliable store of wealth and protector of value for thousands of years, through both bull and bear markets.
As the equity market bull approaches its end, the gold and silver market bull may be just getting started. Ongoing sovereign debt issues, declining currency values and inflationary pressures are just a few of the issues that could potentially fuel significant price appreciation in the metals complex.
Speak with an Advantage Gold account executive today about the potential benefits of physical gold and silver ownership. Our associates are here to answer any questions you may have, and can even show you how to buy and hold these key metals using your IRA account.
Don’t wait for volatility to return or for the next major stock market crash before exploring your options. Call Advantage Gold today at 1-800-341-8584 to get started.Tags: advantage gold, fear gauge, gold, stock market collpase, vix, volatility index