by Partners 4 Prosperity | May 25, 2017 | Comments Off on Crash Proof Your Portfolio with Non-Correlated Alternative Investments
“Some people don’t like change, but you need to embrace change if the alternative is disaster.” – Elon Musk
Investors have short-term memories, which is why so many cling to the stock market, even when it’s on a downward trend, or overdue for a correction.
If you have lost confidence in the market, or are simply looking for WHERE you can invest OUTSIDE of the stock market—safely and profitably—you’re not alone.
So why do even nervous investors still cling to mutual funds and stocks? We think it’s due to one of these reasons:
“Already made up my mind.” They aren’t open-minded to try something new, even if they are unsatisfied with their current strategy.
“Risk equals reward.” People mistakenly believe that the stock market roller coaster ride is required if they want to earn a good rate of return in the long run. (We’ve been well-conditioned to believe this! See our post about the insanity of risk assessment profiles.)
“You don’t know what you don’t know.” Some investors just aren’t aware of other options. They lack the knowledge, confidence, and guidance to seek better alternatives. Or perhaps they are aware that alternative investments can be held in self-directed retirement accounts.
“What will they say?” People have relationships with investment reps, planners, and advisors who don’t offer alternative investments (or who actively steer their clients away from them because they don’t understand them, don’t sell them, or both.)
Inertia. Sometimes, people have educated themselves and want to try alternatives, but it’s easier to put it on your “to do later” list and convince yourself that the sky really isn’t falling (at least not yet), so why not just avoid the topic with your planner, spouse, parents or friends who aren’t as open minded as you a little while longer?
Let’s face it: typical financial advice tends to give very limited options, fixating on “how much of your portfolio should be in stocks, and how much in bonds.”
“Every decade or so, dark clouds will fill the economic skies, and they will briefly rain gold. When downpours of that sort occur, it’s imperative that we rush outdoors carrying washtubs, not teaspoons. And that we will do.”
These are uncertain times for investors. There’s volatility in the stock market, uncertainty in the housing market, and massive unpredictability in the political arena. Let’s take a look at what’s happening and—most importantly—effective strategies for volatility that will keep you building wealth in any market!
The stock market: 2020 was a volatile year for the stock market. Lockdowns saw the market plummet, then making some recoveries later in the year. Now in 2021, we’ve seen crazy things happen with GameStop, AMC, and other businesses exploding artificially overnight.
Kim and Spencer talk about what the difference is between guaranteed and non guaranteed cash value life insurance. You’ll learn how this affects you and your family’s finances.
Best-selling author Kim Butler and Spencer Shaw show you how to take more control of your finances. Tune in to The Prosperity Podcast to learn more about Prosperity Economics thinking and strategies today!
Do you have a question you would like answered on the show? Please send it to us at email@example.com and we may answer it in an upcoming episode.
“Formula for success: rise early, work hard, strike oil.” —J. Paul Getty
2020 was a wild year for the oil and gas industry, to be sure! Circumstances brought a perfect storm of collapsed prices and demand.
About the same time the pandemic destroyed demand, Saudi Arabia and Russia got into a price war to see who could go the lowest. Prices edged down, from a high of $63.27 per barrel (WTI) in January to $20… $19… $18. Then, on April 20, the unthinkable happened: oil futures went into a free fall, finally bouncing at negative $37 a barrel.
“A barrel of oil is cheaper than the price of beer,” declared a CNBC headline. Demand had fallen so low, companies couldn’t give oil away! Instead, producers were paying tankers high fees to simply “park” oil temporarily.
What does that mean for oil investors—or potential investors now? Is oil still a good investment in 2021 and beyond?
We get questions all the time about gold and other precious metals. Our clients want to know if gold is a good investment for these times. Should gold or silver be in their portfolio—and if so, in what form? We hear questions such as:
With a new recession upon us, is gold a good investment now?”
“Should I have precious metals in my portfolio as a general rule?”
“What kind of gold or silver is best? How should it be stored?”
And so on.
These are questions that only you can answer for yourself. Our best recommendation is to do what you desire in order to have peace of mind. However, we can provide some perspective that may help your decision-making!
This website is provided for informational purposes only. The information contained herein should not be construed as the provision of personalized investment advice. Information contained herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security or investment. Investing involves the risk of loss and investors should be prepared to bear potential losses. Past performance may not be indicative of future results and may have been impacted by events and economic conditions that will not prevail in the future.
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