How to Prepare for One Inevitable Financial Crisis
An economic collapse is on the horizon.
Indicators show that it’s only a matter of time at this point.
Here’s how you can prepare for the inevitable financial crisis.
A recession is all but a foregone conclusion at this juncture.
A century of bad monetary policy has created the volatile boom/bust cycle we’ve come to accept as the natural order of things.
Due to the Federal Reserve artificially manipulating interest rates, a recession occurs every 7-10 years, and we’re well overdue for another one.
The Great Recession of 2007-08 triggered a worldwide financial crisis.
Barack Obama’s meddlesome economic policy led to the slowest recovery in history, and the economy wasn’t able to properly heal.
Donald Trump’s tax cuts and deregulation breathed some life into the economy and staved off the recession, but the downturn is coming.
One strong way to hedge against inflation and market volatility is an investment in precious metals.
Gold has a long track record of maintaining its value against instability.
Over the past 50 years, the average price of gold per ounce has increased exponentially from $41.10 in 1969 to $1360.53 in 2019.
And currently, gold sits at a price just a hair under $1,600.
That’s an increase of over 3,700% and rising.
Gold’s strong track record is why it should be part of your portfolio.
Precious metals shouldn’t comprise your entire portfolio, but 5-10 is a healthy number.
Other commodities bring much more volatility, and they’re subject to the whims of geopolitics.
For example, political strife in a country that produces cotton could severely affect the commodity price.
Precious metals have proven more durable to such factors.
If you do opt to invest in gold, do your due diligence and go with reputable companies.
It’s unwise to search for “deals” unless you have considerable knowledge of the market and the players involved.
There’s a reason why something may sell below market rate, and if you don’t know that reason, you either literally struck gold, or more likely you’re getting scammed.
Now is the time to start researching investment opportunities in the market or elsewhere, such as local real estate, and small businesses.
Investment has become a tool for everyone, not just day traders and the wealthy.
With the Federal Reserve keeping interest rates historically low, savings accounts are essentially useless in terms of building wealth.
The market is overpriced at the moment, but when the correction hits, plenty of good companies will go on sale.
Start doing the legwork now so you can pull the trigger quickly on companies you like at the right price.
Even if you’re not an experienced investor, gold is a solid investment for a portion of your portfolio, and there are reputable companies that allow you to test the waters at modest levels.
Right now is a sensible time to start looking into gold because there’s a lot of uncertainty on the menu for 2020.