The stock market is still not too far off from recent highs. In fact, the market remains in striking distance of the 3000 level on the S&P 500. A few good weeks, and the market could be carving out fresh new all-time highs. Investors may simply be waiting until the recent pullback has subsided before looking to get long again.
Such is the way the stock market works during a bull market-until it doesn’t. The market has been showing signs of exhaustion recently. The spike in market volatility, along with some technical damage and fundamental issue are all acting to keep stocks lower-for now anyway. Any further dip in price may be viewed as a buying signal buy investors still looking to get into the market.
The problem is, once the retail crowd reenters the market and gets long, will the larger players be doing the same? Probably not. In fact, the larger players are likely to be patient, wait for the retail crowd to get in, and then look to aggressively sell any potential rallies. This is known as a distribution phase.
Generally speaking, the larger players, commonly referred to as the “smart money,” will look to buy when no one else is and sell out when everyone else is looking to buy. The current bull market is likely to see similar conclusion.
That is what makes right now the ideal time to consider alternative asset classes. In particular asset classes that have not seen a run like stocks in recent years. A key to successful long-term investing is recognizing value.
If value is what you are after, then gold should be at or near the top of the list. This key asset class has been moving higher in recent months, yet is still quite a ways from previous all-time highs near the $2000 per ounce level. A move back towards that level, however, could be seen in rapid fashion given the numerous economic and geopolitical issues currently being seen around the globe.
Not only could this asset class move sharply higher from current levels, but it can also potentially provide a hedge against accelerating inflation and a weaker dollar.
To put the current market scenario into context, consider this: Would you rather buy stocks at or near what could be a major top, or buy an asset like gold that may not only be just getting started but can also potentially provide a hedge against many of the economic and geopolitical issues currently being seen around the globe? At current levels, which investment may potentially provide the greatest overall long-term value?
If you favor the latter, the time to act is now. 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 incorporate this key asset class using your IRA account.
Don’t wait for stocks to finally collapse in a major way, or for inflation to take hold and erode your purchasing power. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.Tags: advantage gold, distribution phase, gold, smart money, stock market decline, volatility