The stock market seems to keep going and going. The market has had little, if any, in the way of major pullbacks or retracements since the current bull market began about a decade ago.
The market seems unable to go significantly lower, and the current level of bullishness borders on the dangerous. Price action like that has been seen in recent months has a tendency to suck investors into the market-especially those that have been waiting for that big “pullback” to get long. As these investors can no longer stand to watch the market go up without them, they finally pull the trigger and enter the market. It is often at this time that the bottom then falls out. Here are three reasons to consider getting out of stocks now:
- The bull market won’t last: The current bull market and economic expansion have already surpassed even the most bullish of expectations. While the run higher could potentially have a bit of gas left in the tank, the little upside that could be left is simply not worth the amount of downside risk.
- Rates are going higher: The Fed has made it very clear that it intends to stay ahead of the inflation curve. With inflation already running hotter, the central bank will need to stay a step ahead of rising price pressures by hiking rates-perhaps higher and faster than many expect.
- The next major drop could make 2008/2009 look like a walk in the park: When stocks do reverse course and head south, the selling could potentially knock off 20, 30, even 50% or more from current levels. That means that all of the money that investors have made in recent years could be wiped out in a matter of months, weeks or even days.
The writing is already on the wall. At some point, stocks will find themselves unable to continue their ascent. Some have referred to the current state of the stock market as a “bubble.” As has been seen time and time again, when the bubble finally bursts it leaves significant damage behind. Much of the wealth that has been created in recent years will evaporate just as it did during the last major market crash.
That is why now is the ideal time to consider allocations in alternative asset classes that are not strongly correlated to stocks and bonds. That is why now is the ideal time to start building a significant allocation in physical gold.
This asset class has been considered a reliable store of wealth and value for centuries, and may be especially useful in the current inflationary climate. Not only does gold have significant upside price potential, but it may also act as an important hedge against rising inflation, lower stocks, a weaker dollar and other economic and geopolitical factors.
Adding it to your portfolio has never been easier. Simply 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 build an allocation in gold using your IRA account.
Don’t wait for the next major equity collapse to wipe out billions in shareholder value before taking action. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.Tags: advantage gold, gold, inflation, interest rate hike, stock market, volatility