Don’t Be Fooled By The Stock Market Rally

Gold and silver perform well during stock market turbulence as well as times of inflation, including during rate-hiking campaigns.

A key driver in the performance of the monetary metals is negative real interest rates, a condition that exists when the inflation rate is higher than nominal interest rates.

That’s what we have today. And even if the Fed were to start hiking rates again, they will almost certainly remain “behind the curve” such that real rates remain below zero.

Watching the Stock MarketThe Fed has blown a bubble, arguably the largest bubble ever, and eventually, that bubble is going to pop.

When it does, many of the investors that have seen strong performance during the equity rally will see their accounts suffer real losses.

As the old saying goes: “Markets take the stairs up and the elevator down.” This elevator is likely to be fast – and may even catch the most astute investors off-guard.

Given a reckless Fed and the equity market’s astronomical valuations, now is the ideal time to take steps to protect your investment portfolio and financial future.

Against the current backdrop of easy money, there may simply be no better asset class to turn to than precious metals.

 

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