Asset Strategy, Market Insights

Why Gold as an Investment Wins, No Matter the State of the Economy

Gold Alliance disclaimer

As financial triggers go, this virus may be the worst. Early 2020, the stock markets went into correction territory, in what can only be described as a meltdown just like in 2008, and, just like then, what we witnessed is just the beginning. Another sell-off is due because de-leveraging by hedge funds and speculators. The smart money is exiting the markets towards gold investing early on to secure large profits before the next stage ensues.

The next stage of the collapse is when the amount of people infected with coronavirus explodes, as we’re seeing it today, halting consumer and business activity, and when the repercussions to major corporations are spreading. This is when our economy will enter its next stage of the recession.

Wall Street’s Self-Serving Strategies

And this is where we are now. Leaning on Wall Street’s self-serving strategies of having our retirement accounts invested 100% in the equity markets—and leaning on their mantras of buy-and-hold to keep us warm in the brutal bear market that’s inevitably coming. But don’t take my word for it.

Chief Economic Advisor at Allianz, Mohamed El-Erian, explains

“It’s [the market] pricing in a significant economic slowdown and its pricing incorporates—especially the multinationals—being hit by both lower revenues and higher costs. And finally, it’s pricing in some de-leveraging.” The next stage, he says, will be the market pricing in the worsening prospects for the economy and the corporate sector “that … unfortunately will result from the coronavirus scare.”

Any sane investor that has funds in the stock market should be alarmed by such statements by a market veteran like El-Erian, especially while they are dealing with shock after shock like when the Dow Jones made its fastest correction in history earlier this year.

But it’s not just El-Erian, so you simply must take notice. Goldman Sachs previously announced that US companies will generate zero earnings growth in 2020. This slowdown is going to be devastating to the over-leveraged US and global corporations. What will corporations saddled with debt do without enough revenue? Default! And what will that do to the stock market? To the bond market that investors are now rushing into, thinking they will be saved there? And to your retirement accounts?

Defend Your Portfolio

I have been writing numerous articles in the last few years about the reckoning to our economy due to corporate debt. If you follow the opinions voiced on our site, I’ll emphasize that this article is not about being right or about gloating how well our clients are doing at this time. It’s about having you take action to defend your portfolio, your family’s nest egg, before it will evaporate in a severe market correction as corporate defaults will melt the stock and bond markets.

We can show you how and why gold as an investment is one of the best stores of value protecting your wealth. We can show you how anyone following our advice gained many times more than the stock market’s “buy and hold” zealots both short-term and long-term.

But at this point with such clear evidence and with voices of the world’s smartest investors giving you a clear warning, this article is about you just taking action to diversify away from being 100% in Wall Street–issued paper assets. Any action that’ll take into consideration a highly probable terrible period for stocks in 2020 and beyond may save your portfolio. It’s time to consider gold as an investment. If you’ll do that, this article was worth writing. And if you want to protect your retirement savings, we can show you how to invest in gold.

Contact us today to learn more about how you can invest in physical gold, whether you have a 401(k), an IRA, or another retirement savings account.

About Kevin Troy

Kevin Troy In his more than 17 years in the financial industry, Kevin has focused on precious metals as investment assets. He has penned numerous articles on buying and selling precious metals and about the best entry and exit strategies for the financial markets. Thousands of clients have benefited from Kevin’s expertise and learned to protect, preserve, and safeguard their investments with precious metals. Kevin has been with Gold Alliance for more than 3 years as a leading Sr. Portfolio Manager, and he oversees a large portion of our clients’ portfolios.