The wealthiest Americans are hoarding physical gold just in case the next market correction is one of complete devastation. They are keeping their gold as an insurance against runaway deficits and a ballooning national debt which is devaluing the dollar.
There’s also the looming threat of a global pandemic in the coronavirus outbreak.
“The longer that this virus threat continues to weigh on the global economy, the more it poses a risk for at least a correction in the stock market,” said Ed Yardeni, the president of Yardeni Research. He is pointing to the possibility of a 10% drop from recent market highs in an interview on CNBC on Friday.
While there’s no denying the stock market has done exceptionally well, market bulls like Yardeni suggests that because of that, this next correction will be a noticeable one. Yardeni, who says he’s going to keep cash on the sidelines until he gets more clarity on the coronavirus, remains bullish longer term. “Interest rates are so extraordinarily low,” he said. “The central banks have basically provided no interesting reasons to buy in the fixed-income markets and lots of reasons to buy in the stock market.”
While cash is not necessarily a poor decision, having savings for an emergency just makes sense. But in the face of runaway deficits, and an ever-increasing national debt that is devaluing the dollar, why are some market bulls hoarding cash to prepare for the next market correction?
93% Of Investors Generate Annual Returns, Which Barely Beat Inflation.
Wealth Education and Investment Principles Are Hidden From Public Database On Purpose!
Build The Knowledge Base To Set Yourself Up For A Wealthy Retirement and Leverage The Relationships We Are Forming With Proven Small-Cap Management Teams To Hit Grand-Slams!
The amount of cash being held by the wealthy has been increasing noticeably, especially in the past several months. That’s because the perfect storm is set up, but no one, not even the wealthy and the bulls know exactly when the next market correction will occur.
But, for those wealthy individual investors who have the luxury of not being 100% invested in the stock market if they don’t want to, the ability to have a large cash allocation is a huge advantage. It’s an advantage on which high net worth investors around the world, including Warren Buffett, are overwhelmingly capitalizing.
The rich are largely in agreement about an imminent downturn. “55% of family offices said a global recession will come in 2020,” according to a Campden Wealth Research survey of 360 ultra-high net worth UBS clients. “Family offices are cautious about geopolitical tensions, and there is a widespread sense that we’re reaching the end of the current market cycle,” says Rebecca Gooch, director of research at Campden Wealth.
Gold and cash appear to be the choices of the wealthy to protect themselves against any upcoming market downturn, whether it’s a market correction or a complete recession.
If Yardeni is correct in his assumption that the next market correction will be noticeable, thanks to the coronavirus and other geopolitical factors at play, then it makes sense to diversify and cash is part of the for the wealthy.
As I have previously mentioned, when the majority of those who are wealthy make moves, it can be important to understand why. Afterall, they are wealthy for a reason!
Governments Have Amassed ungodly Debt Piles and Have Promised Retirees Unreasonable Amounts of Entitlements, Not In Line with Income Tax Collections. The House of Cards Is Set To Be Worse than 2008! Rising Interest Rates Can Topple The Fiat Monetary Structure, Leaving Investors with Less Than Half of Their Equity Intact!
Protect Yourself Now, By Building A Fully-Hedged Financial Fortress!
No matter how good an investment sounds, and no mater who is selling it, make sure you’re dealing with a registered investment professional. Use the free, simple search at investor.gov
This work is based on public filings, current events, interviews, corporate press releases and what we’ve learned as financial journalists. It may contain errors and you shouldn’t make any investment decision based solely on what you read here. It’s your money and your responsibility. The information herein is not intended to be personal legal or investment advice and may not be appropriate or applicable for all readers. If personal advice is needed, the services of a qualified legal, investment or tax professional should be sought.
Never base any decision off of our advertorials. Wallace Hill LTD (FutureMoneyTrends) stock profiles are intended to be stock ideas, NOT recommendations. The ideas we present are high risk and you can lose your entire investment, we are not stock pickers, market timers, investment advisers, and you should not base any investment decision off our website, emails, videos, or anything we publish. Please do your own research before investing. It is crucial that you at least look at current SEC filings and read the latest press releases. Information contained in this profile was extracted from current documents filed with the SEC, the company web site and other publicly available sources deemed reliable. Never base any investment decision from information contained in our website or emails or any or our publications. Our report is not intended to be, nor should it be construed as an offer to buy or sell, or a solicitation of an offer to buy or sell securities, or as a recommendation to purchase anything. This publication may provide the addresses or contain hyperlinks to websites; we disclaim any responsibility for the content of any such other websites.
Please use our site as a place to get ideas. Enjoy our videos and news analysis, but never make an investment decision off of anything we say. Please review our entire disclaimer at FutureMoneyTrends.com/