Recent weeks have seen stocks all over the map. From reaching new highs near 27,000 earlier this month to finishing last week over 2,000 points below those highs, investors have been plunged into an uncertainty they hadn’t experienced since February. Back then, many investors didn’t know what to do, as markets plunged but then seemed to recover. Once the new highs were reached again in October, many financial commentators claimed that the bear market was over. Even today, now that we once again find ourselves in correction territory, many market bulls are claiming that we’ve reached the bottom and stocks will continue growing yet again. But how do you as an investor feel?
With so many Americans reliant on stock market growth for their wealth, many have piled their hard-earned savings into stocks, failing to diversify their holdings. You can’t blame them, as stocks have been just about the only way to accumulate wealth over the past decade. With zero interest rates for nearly a decade and a paucity of investing opportunities, stocks were about the only game in town, even if they never reached the same growth rates as they did through the 1980s and ‘90s.
That overexposure to stocks means that millions of investors now see their investments moving all over the place as stocks are going on a wild ride. For those investors for whom this is their first rodeo, the coming bear market is leaving them apprehensive. And for those who remember the financial crisis, they’re probably quaking in their boots, fearful of yet another 50% fall in stock markets. Thankfully there’s an asset that can help safeguard the value of their assets and protect them from being wiped out: gold.
One of the important things to remember about gold is that it helps to protect assets against loss of value. Gold may not be able to match the short-term growth of stocks when they’re booming, but it does something far more important – it protects against losses on the downside. Portfolios that held 30% of their assets in gold lost far less money during the financial crisis than portfolios that were 100% invested in stocks. If you’re willing to sacrifice a little bit of upside for a whole lot less downside then gold is the right investment for you.
With a gold IRA you can even roll over existing retirement assets from a 401(k), IRA, or similar retirement account tax-free, allowing you to enjoy the benefits of gold’s asset protection along with the tax advantages of a traditional IRA account. So if you’re getting nervous about the directions markets are taking, it’s time to look to gold to protect your retirement savings before it’s too late.
This article was originally posted on Goldco.
