Stocks have been moving higher for the better part of a decade now. It is noteworthy that during the recent bull run, the market has seen very little in terms of serious or protracted corrections.
Stronger economic data, more jobs and higher wages have all recently fueled the market’s ongoing upside, but at some point, the stock bulls will run out of ammunition. In fact, the economy is becoming overdue for its next recession, and it is also not clear just how long the recent tax cut stimulus may keep things moving higher.
As has been seen before, the market has the power to suck every last investor in before finally showing its hand and dropping like a rock. The current bull market may be no different. Now is the time to stop and ask yourself how a 30, 40, or even 50% or greater decline in stocks might affect your portfolio. If you were involved in the crash of 2008/2009, you likely know all too well. If you were not invested at that time, it is important to understand what a significant impact the crash had on investors: Retirement savings cut in half, retirement plans having to be postponed, the need for downsizing, the need for a second job…the list goes on and on.
Those are the types of things that can happen when your net worth takes a massive dive. But it doesn’t have to be that way.
Strong economic data, relatively low rates and overall optimism may keep investors pouring into stocks. This could suck in even more money and late-comers to the party. Once all these investors have gotten long, the bottom will fall out. A massive stock drop could wipe out hundreds of billions in shareholder value, taking many back to square one.
Given the current stock market extreme, now is the ideal time to add further diversity to your portfolio, and to make sure you have capital allocated to assets that can potentially hedge against accelerating inflation and a weaker dollar. Gold should be at the top of your list.
Gold is getting poised to embark on a multi-year protracted bull market that will likely coincide with the demise of the stock market. Not only does this asset class have significant upside potential, but it can provide a hedge against rising price pressures, declining currency values and even lower equity prices.
Adding gold to your portfolio 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 accumulate this key asset class using your IRA account.
Don’t wait for the next major stock market crash, which may make 2008/2009 look like a walk in the park. With stocks getting way overvalued and inflation on the rise, the time to build a significant allocation in gold is now. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.Tags: advantage gold, bull market, gold, higher wages, volatility