The bull market in equities is approaching the ten year old mark. This is significant because no stock market rally has ever reached the ten year mark without seeing at least a 20 percent downturn at some point. The Dow is up a phenomenal 200+ percent since the 2009 lows, and has yet to look back.
We believe that the next major crash is coming, and likely coming sooner than many would care to believe. Although the next major catastrophe is likely to be blamed on the Trump administration or even the Obama administration, the reality is that it is the Fed that has fueled the current bubble being blown further every day.
You could make the argument that stocks are extremely overvalued at current levels, and when stocks become extremely overvalued bad things usually follow i.e. the dot-com bust.
The Fed has kept interest rates at zero for years, and their rounds of quantitative easing have pushed yield hungry investors into equities with little-if any- other choice.
Although the economy has improved greatly in recent years, you cannot deny that the same economy is now showing significant signs of slowing down. A contraction in credit, lower automobile sales and some lackluster housing are just a few of the issues currently being seen.
The economic slowdown happens to be coming at a time when the Fed is looking to normalize monetary policy through gradual rate hikes, and the central bank ceased its QE some time ago. The notion of rising rates certainly will not do the economy any favors, and as we have discussed in previous commentary, the Fed may be cornered.
The magnitude of the next crash-which some might say is due or even overdue-could be on a scale seldom seen before.
Imagine for a moment the stock market declining by 25, 35 or even 50 percent. Billions and billions of shareholder value could once again be wiped out within a matter of weeks or months.
The warning signs are there, the question is will investors pay attention to them.
Now may be the perfect time to look to diversify your holdings and to prepare for the next major economic crises. Now may be the ideal time to consider allocating capital to asset classes that have the potential to outperform during such a scenario. Now may be the ideal time to add physical metals like gold and silver to your portfolio.
Investing in these key asset classes has never been easier, and you can take comfort in having these metals as part of your overall holdings within a matter of hours.
Speak with an Advantage Gold account executive today about the potential benefits of gold and silver ownership. Our account executives are here to answer any questions you may have, and can even show you how to take advantage of your IRA account to add these key assets to your holdings.
Don’t wait for the stock market to collapse, taking a significant bite out of your net worth along the way. Explore your options for gold and silver ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.Tags: advantage gold, credit contraction, downturn, gold, monetary policy, stock market crash, stock overvaluation