LOS ANGELES, May 23, 2017 /PRNewswire/ -- Markets are at the edge of the most severe market correction we will see in our lifetime.
In recent years, we've seen two historic stock market bubbles burst — the dotcom crash of 2000 and the housing crisis of 2008. According to analysts at Deutsche Bank, one of the largest and most well-respected financial institutions in the world, these were just minor crashes within a much larger economic phenomenon, in which we now find ourselves- known as an economic super-cycle.
Deutsche Bank analysts are sounding the alarms, because that entire cycle is about to come to an end.
The economic super-cycle began with the pro-growth policies of the Reagan administration. Since then, growth has been tremendous, but at what cost? In the United States alone, we've accumulated $20 trillion in debt. Currency manipulation in overbought markets has nearly brought about the destruction of the EU.
At this point in history, central banks have driven rates into the ground. The United States is $20 trillion in debt, with more than $11 trillion of that debt accumulating negative yields. Cash deposits are not covering the current inflation rate, and smart investors are finding solitude in precious metals.
These are indicators that the market is about to plunge off a serious cliff — and yet stocks continue to break new highs.
"Investors are as sanguine about the stock market as they have been in almost a quarter of a century, despite months of global political turmoil," wrote Gunjan Benerji for the Wall Street Journal last week.
Most private investors are completely in the dark regarding what's about to happen to the marketplace, because the news is focused on the Russia investigation, as new dramatic installments unfold every day.
In the past, the Fed has printed money and lowered interest rates to cope with a stock market bubble's pop. But we have exhausted both of those tools under the Obama administration, meaning this recession is going to cut far deeper and last even longer than the crash of 2008.
We are faced with two options: leave it all in the markets, knowing your assets are likely to get cut in half, or move it out now.
Does your portfolio check these boxes?
1. You are well diversified for a market crash.
2. You have identified under-performing assets & made necessary changes before the market turns.
3. You have reduced your speculative investments and increased your holding in safe haven assets.
Bull markets are the optimal time to review asset allocation and ensure that your portfolio is aligned with today's financial outlook.
The dollar is taking a hit, the euro has spiked since the French election, the White House is in turmoil, and investors are flocking back to the yellow metal. In just the past 10 days of political volatility, gold has gained $30.
Typically, when stock markets correct precious metals double — and the portion of your portfolio that was stocks should be replaced with a form of portfolio insurance, such as gold or silver.
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SOURCE Capital Gold Group