By David Treece
The case for owning physical gold and silver has never been stronger. In order to maintain your purchasing power, you must hedge your investment portfolio with precious metals. If you are serious about preserving your wealth, at least ten percent of your savings should be in metals. Stocks are on their longest losing streak since 1980, and it’s going to get much worse before it gets better.
We make it no secret what we do. We recommend for anyone who does not have an appetite for losing their money to purchase fixed insurance contracts and buy physical precious metals. Your stockbroker (read: risk advisor) hasn’t told you about this because it’s not profitable enough for him or he’s ignorant.
Fixed insurance companies offer life insurance policies and annuity policies. Our clients love us because they never lose money when their money is in insurance contracts. When the market goes down and mutual funds are sinking like a rock in a sea of water, our clients are making money or making zero. Zero is better than losses.
We anticipate big stock market drops in the very near future, and remember it’s better to be a day early, a week early, or even years early rather than a day late on the next stock market downturn. The long-term plan of buying and holding stocks is futile today because fundamentals are out the window, because capitalism is dead.
George W. Bush infamously said, “I’ve abandoned free market principles in order to save the free market.” Wrap your mind around this oxymoronic statement and study what Bush said because it is indicative of the system we have today.
When Bush agreed to allow the Federal Reserve Bank to print trillions of new dollars, it turned our monetary system upside down. This is not to say that some people have not benefited from this, but many people have been adversely impacted also. The money printing fiasco we’ve endured has artificially created the gains stockholders have made. This will cause the greatest stock market crash the world has ever known. When you are in the stock market you are opening yourself up to the self-destruction.
Remember, it’s better to be a day early than a date late. If a person has $100,000 in their 401k or stock market account, and the market goes down on average 50%, the person’s account will be at $50,000. In order for the person to break even they will have to earn 100%. Let’s do the math: your remaining $50,000, added to $50,000 times a 100% return, equals the $100,000 you started with. Do you think your stockbroker can help you make 100% return? If so call us and let us know who this miracle worker is, because we want to invest with him.
If you think losing 50% of your stock market invested money is not likely or impossible, remember in October 2008 the Dow went down to 8,378.95. Today it closed at 17,888.28.
The Federal Reserve Bank has saturated the economy with new money which has driven the market up. Or as Donald Trump said, "We're in a bubble. We have artificially low interest rates. We have a stock market that, frankly, has been good to me, but I hate to see what is happening. We have a stock market that is so bloated. Be careful of the bubble, because what you've seen in the past may be small potatoes compared to what happens. So be very very careful."
If you are looking for safety and return of principal, look no further. You’ve found the most credible source. If you have a financial counselor in your life and they have not told you about the concepts we’ve explained here, are they helping you or helping themselves more?