These are scary times we are living in, scary times. Although on the surface things may look grand and rosy, peeling back the onion shows an economy on shaky ground, a massive Fed balance sheet, geopolitical turmoil and stock valuations that may be considered “out of the stratosphere.”
This charade could continue for some time, but the endgame may remain unchanged. Stocks could be setting up for one of the most, if not the most, significant crash in history.
Although many may look to put the blame on the current administration, the reality is that an upcoming crash has been brewing for some time. The wheels were set in motion long ago, and greedy and complacent investors may potentially suffer losses that could closely resemble that of 2008/2009, or even far worse.
On the geopolitical front, North Korea represents a significant challenge that unfortunately may only be resolved with military action. Diplomacy has thus far failed, and it seems that the U.S. Government is preparing to move in another direction. Needless to say, the threat posed by the North is very real and very significant, and any further escalation has the potential to send ripples through global equity markets and put a major dent in overall appetite for risk.
The stock market has been moving higher for nearly a decade now. This bull market will-at some point-come to an end. Valuations are arguably way overstretched at this point and, as has been seen time and again, markets have a way of correcting such extremes with swift and brutal force.
Inflation is nowhere to be found, and it is no wonder that the Fed does not appear to be in any real hurry to tighten monetary policy. Although the Fed may talk of improving economic conditions, a lack of inflation would seem to indicate that the economy remains lackluster at best. The economy is also due for the next recession as well, and a contraction could be right around the corner.
Now is not the time to be complacent, but rather a time to be very proactive. The next major crises could be seen any day now, and those who choose to turn a blind eye may see a significant loss of wealth in the coming months and years.
Now may be the ideal time to consider further diversification, particularly with asset classes that could potentially hold their value during a major downturn or even outperform.
Given the current geopolitical landscape, dollar weakness and potential for a major crash in stocks, now may be the right time to consider building an allocation in physical precious metals like gold and silver.
These metals may potentially provide a meaningful hedge against a stock market collapse or weaker currency, and could potentially embark on a multi-year bull run as stocks head south.
Speak with an Advantage Gold account executive today about the potential benefits of gold or silver ownership. Our associates are here to answer your questions and to show you the role these assets may play in your portfolio. We can even show you how to utilize your IRA to begin allocating capital to these key asset classes.
Don’t wait for the next major stock market crash or for the next major economic downturn before taking action. Complacency can be very, very costly. Call Advantage Gold at 1-800-341-8584 to get started today.Tags: advantage gold, gold, inflation, monetary policy, north korea, overvaluation, stock market collapse