Stocks have had a great run, no doubt. Since bottoming out in the aftermath of the financial crises of 2008/2009, stocks have gained an enormous amount of value. In fact, recent months have seen not only increasing stock market exuberance, but also more and more cautionary tales.
The herd mentality is alive and well in stocks, and with each fresh all-time high, more and more investors are getting sucked in-or sucked back in. Markets have an uncanny way of pulling in every last investor before “POOF,” the bottom drops out. The only question is: will you take money off the table beforehand or will you sit idly by as the market does what it has done time and time again.
Stocks have been moving higher for a decade now, and the length of the bull market has exceeded expectations. Like a rubber band, however, the farther the market gets stretched the more likely it will eventually snap.
Stocks have seen astounding returns since President Trump was elected. The hopes for less regulation, a more business friendly environment and lower taxes have all likely played a part in fueling the upside. And while Trump may be trying to make good on his campaign promises, typical Congressional gridlock may make it very challenging. That being said, stock investors could be putting the “cart before the horse” at this point and could be set up for a major disappointment if key pieces of legislation are not passed or are delayed.
Recent economic data, including inflation data, suggests the Fed will remain on track for another rate hike this year with several more hikes possible next year. If you don’t think ultra-low rates and massive QE have played a major role in the stock market’s rise, think again. Once the Fed attempts to normalize monetary policy, the stock market may have to rethink current valuations and the possibility of a major collapse exists.
In addition to the above factors, the current geopolitical landscape warrants caution. An increase in North Korean tensions or trade issues with China could all have a major effect on markets.
Now is the ideal time to consider alternative asset classes that may not only provide the potential for capital appreciation, but may also add further diversification to your portfolio. Hard assets like physical gold may be an excellent choice right now, given current price levels and the potential for a major upside breakout.
Physical gold can not only add diversification and the potential for price appreciation, but this asset class can also potentially provide a meaningful hedge against a number of other economic and geopolitical issues.
It has been trusted as a reliable store of wealth and value for thousands of years, and carries no counterparty risk, unlike stocks and other “paper” assets.
Buying and holding physical gold has never been easier than it is today. Speak with an Advantage Gold account executive today about the potential benefits of gold ownership. Our associates are here to answer any questions you may have, and can even show you how to take advantage of an IRA account to buy and hold this key asset class.
Don’t wait for stocks to get ugly and for billions in shareholder value to get wiped out again before taking action. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started today.Tags: advantage gold, bull market, gold, inflation, north korea, stock market, trump