Stocks have been moving higher for years now, in fact it has been nearly a decade since the bull market got underway.
Although it seems at times that nothing can stand in the way of higher equity prices, some investment professionals have been sounding the alarm bell. One such professional is Bill Gross, affectionately referred to as the “bond king” and manager of the Janus Henderson Global Unconstrained Bond Fund.
And when Mr. Gross speaks-people listen.
Mr. Gross seems to be of the opinion that market risk is at the highest levels since the financial crisis took hold in 2008. He was recently quoted in a Bloomberg.com piece saying: “Instead of buying low and selling high, you’re buying high and crossing your fingers.”
He was further quoted as saying: “If there’s a common factor it’s the expansion of credit. And the credit that’s being generated by central banks. Money is being pumped out into the system and money that is yielding less than nothing seeks a haven not only in bonds that are under-yielding but in stocks that are overpriced.”
It would appear that Mr. Gross is suggesting that stocks at current valuations are not a great bet, while bonds at current yields are a lousy investment as well.
This begs the question then of where might investors turn.
Well, looking at the length of the current stock market bull run and some past market tendencies, stock investors could be in for a rough ride any day now. The U.S. could potentially see the next recession in the coming quarters, and numerous issues could weigh on global equity markets.
Remember how quickly stocks declined in 2008-2009 and how much investor value was wiped out?
This time around could potentially make the financial crisis look like a picnic. All of the gains investors have seen over the last several years could be erased in a matter of weeks or months.
Are you prepared?
Now may be the ideal time to look for added diversification away from stocks and bonds. Now may be the ideal time to consider an allocation on physical precious metals like gold and silver.
Given the potential risks being faced by the economy and financial markets, now may be a great time to begin building a portfolio of physical metals, or adding to existing holdings.
At current price levels, gold and silver could potentially prove to be a much better value for your investment dollars than stocks or bonds.
And it’s never been easier.
Speak with an Advantage Gold account executive today about the potential benefits of physical gold or silver ownership. Our precious metals account executives are here to answer any questions you may have, and can even show you how easy it is to use your existing IRA account to buy and hold real, physical metals.
Don’t wait for the next major stock market collapse which could begin any day now. Explore your options for physical gold and silver ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.Tags: advantage gold, bill gross, bloomberg, bond fund, bond king, gold, market risk, recession