Despite some recent bumps in the road, the economy has likely appeared to be fairly strong to the average onlooker. Looks can be deceiving, however, and perhaps the economy is not quite as strong as many have been led to believe.
Look to the Experts
Although there are many critics out there, some opinions may potentially carry more weight than others. When a former Fed Chairman speaks, it might be wise to listen.
According to a recent article from MarketWatch, former Fed Chairman Alan Greenspan recently voiced some observations. Greenspan seems to be of the opinion that higher stock prices are masking the lurking dangers to the economy. He also discussed how the Fed’s description of the economy as being in a “good place” is primarily due to the rebound seen in equities. The article quoted him as stating,
“There is a bit of a stock market aura about the current economy. The short run looks reasonably good, the longer run fades very dramatically, in large part because the rest of the world is sinking.”
Although there may be varying interpretations of Greenspan’s statements, they would seem to suggest that even if the U.S. economy is on solid footing, it may only be a matter of time before the global slowdown takes its toll.
Too Early to Disregard Global Slowdown
The idea of a significant global slowdown has been largely swept under the rug in recent months as stock prices have moved back to within striking distance of previous all-time highs. Current valuations may be unsustainable, however, especially if the current slowdown continues. Some analysts even recently suggested that stocks could see a tumble of 40 to 50% once the next recession takes hold. Such a move could come sooner rather than later of current trends continue and if a U.S./China trade agreement is not reached.
With equities currently near previous all-time highs, now may be the ideal time to act. If stocks fail near current levels, the next major bear market could very well get underway, taking many unsuspecting investors along with it. Against the current backdrop of geopolitical and recession risk, hard assets like physical gold may be of increasing importance. Gold not only has significant upside price potential but may also potentially offer a hedge against rising inflationary pressures and a weaker dollar.
How to Add Physical Gold to Your Portfolio
Adding this key asset class to your portfolio has never been easier, and perhaps never more important. Simply pick up the phone and speak with an Advantage Gold account executive today about the potential benefits of gold ownership and to learn how this asset class may play an important role for your portfolio going forward. Our associates are here to answer any questions you may have and can even show you how to incorporate this key asset using an IRA account.
Don’t wait for the next recession to hit, sending stocks spiraling lower before taking action. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.Tags: 401k gold, add gold to my ira, advantage gold, best way to buy gold, economic outlook, economic slowdown, global economy, invest in gold