On May 17th, I published this blog post titled, "You're In Danger If You Own These Stocks". Since then, the extremely popular stocks I mentioned have dropped, some plummeting 9% over just the past two weeks.
The biggest short-term stock market rise since The Great Depression is now in its fifth year. This epic rally has clearly entered its final stage, where greed, complacency and irrationality reign supreme. Now is a wise time to reduce one's risk to avoid re-experiencing crushing losses.
Fortunately, there also exist opportunities to not only protect one's wealth, but profit throughout the current transition. For instance, gold mining funds have quietly been rising, up over 15% since their lows of just two weeks ago.
It's important to realize that in 2007-2008, precious metals and commodities of all varieties peaked several months after the general stock market. All evidence suggests that this pattern is repeating and I fully expect gold to set a new all-time high over the next 12 months, above $2,000 per ounce.
My other recent articles, "Gold: The Recent Collapse and Approaching All-Time High" and "The Anatomy of a Gold Mining Crash...And Recovery" may also be of interest to you. Both articles provide the historical precedent for gold and mining stocks rallying sharply after setting important lows.
Most people have a very passive approach to investing and leave it in the hands of an investment adviser. Those who stuck with their buy and hold investment strategy throughout the 2008 crisis are receiving a false sense of security right now as their retirement accounts may have finally recovered to their pre-crash dollar values. In reality, these people are still very far behind as inflation has rapidly eroded their actual wealth. For instance, since October 2007, when the stock market last peaked, the average price of gasoline has increased 30%. During this same period, the price of gold has risen over 80%, even after its recent collapse in price.
If you'd like a second opinion about your investment portfolio, I'm happy to assist.
In 2008, most people were taken by surprise--investors and their advisers alike. This time around those reading this have a choice as to what their future holds.
Contact me today to gain understanding and certainty in these uncertain times.
Flourish and prosper,