Super-spreaders have become impossible to contain, and I don’t mean infected coronavirus patients…
Fabricators of misinformation have purposefully confused the public at large during this global health and economic crisis.
The biggest victims – retirees making the decision whether to hold onto their stock investments or move into lower-risk, fixed alternatives.
Regardless of what happens with the coronavirus, there are economic panic signals flashing everywhere.
- MASS UNEMPLOYMENT – More than 36 million Americans have filed for unemployment this year.
- DEMAND COLLAPSE – Retail sales have fallen 16.4%, a new record.
- MASSIVE DEBT – A $2 TRILLION relief bill, with no plan to cover the cost. And another one coming down the pike.
With 36 million Americans on unemployment, is it likely that retail sales will surge once the country fully exits its lockdown stage?
If you, like most Americans, have felt uncertain about what to do with your money during these scary times, please read through the report we’ve prepared very carefully.
This plan will show you 5 ways to protect yourself in the event of another market crash.
The first 3 will help you protect your downside risk from a market crash, an economic depression, or both.
The 4th is both a hedge to protect yourself from inflation and a move with a great deal of upside.
The 5th has handed investors enormous games during pass economic downturns (in fact, many who have used this strategy have made a whole lot of money this year).
1.) Gold
Let's start with the obvious…
There has long been a portion of financiers, investors, speculators and bankers claiming that owning a metal with no utility is pointless.
Yet, for over 5,000 years, gold has remained the safest store of value. It is the single-most robust currency the world has ever seen.
And with United States off the Gold Standard, owning gold is more important now than it ever has been. Via MarketWatch:
The biggest reason to own gold is that it smooths out the volatility in your investment portfolio. Add a little bit of gold, and you’ll pretty much get the same overall returns. But you’ll cut your volatility in half.
So if your stomach churned while watching your portfolio tumble day after day from mid-February through March, adding some gold at the right price could be a safe move to protect your money.
Since mid-February, the gold spot price has soared from $1,582/oz to $1,725/oz. It is still at a good value when compared to the U.S. Dollar. However, it would have been a much-better move before the stock market crash of 2020. Which brings us to our next move…
2.) Silver
The case for silver is exactly the same as the case for gold.
Like gold, silver has been around for over 5,000 years. And just like gold, it is real money which can't be created out of thin air (unlike fiat currency).
There is no counter-party risk (where you need another party to hold their end of the bargain, like with bonds, CDs, or even a bank account). It's been used as currency for thousands of years. And you can hold it in the palm of your hand.
The only difference between gold and silver: it won't cost you as much to own an ounce of it.
Unlike gold, silver is still trading at a pre-crash price. Which means now is a great opportunity to get in, uncertainty growing in the global currency market.
3.) A Savings Account
We hate to say it considering the uncertainty of the global currency market (i.e. all the reasons we just outlined to target gold and silver), but it's important for every American citizen to have a hefty savings account during these – and like us, I know you're tired of this phrase – uncertain times.
Where you keep that savings is up to you, but you're unlikely to find anything with a half-decent interest rate.
But it's important that you stash as much cash as possible so that you can “buy the dip” in equities, hard assets, and our next investment, which offers more upside than any of the investments we've mentioned so far.
4.) Bitcoin
NOTE: For those keeping tally from the headline, this move is both a protective and upside move.
Check out this recent Forbes headline:
In many ways, Bitcoin is quite different from gold…
Gold is robust to volatility in the markets. Bitcoin is way, way more volatile than the markets. Gold holds value because it's stood the test of time. Bitcoin relies on some of the world's newest technologies to exist. Gold is simple. Bitcoin relies on extremely complex technology.
But the strategy and use cases for holding both are exactly the same: a hedge against fiat currency. Via Forbes:
It is not difficult to make the case that bitcoin could be considered far more valuable than gold because of its enhanced utility. Bitcoin has the added benefit of being easier to acquire, transfer, and store than gold. Imagine how much more practical it would be for someone looking to carry all of their worldly possessions from one geography to another.
And because of that, the upside potential for owning gold is far higher.
It is far easier to carry $1,000,000 worth of Bitcoin on something that looks like a thumb drive than it is for a person to carry that value in gold. And that doesn't change as the value of Bitcoin appreciates.
To put a finer point on this, as of March 2020, the total estimated market capitalization of gold was about $9 trillion USD. By contrast, the bitcoin market capitalization is around $170 billion. For those without enough room on their calculator, a $9 trillion dollar market cap would value a single bitcoin at well over $400,000 USD.
So even if you don't yet buy into the idea of digital stores of value, a small bet on Bitcoin is a good hedge against both bad government and has enormous upside.
5.) Trading (MASSIVE UPSIDE)
The highest-upside move to make during a stock market crash is to start trading. However, it's important to recognize all of the risks associated with trading.
The 4 most common active trading strategies are:
- Day Trading
- Position Trading
- Swing Trading
- Scalping
With the rising use of online brokerages and low-fee investing platforms, trading have exploded in popularity, across all generations.
I Couldn’t Believe One Chart Did All This
I’ve been in the trading game for over 20 years, so it’s not very often that something takes me truly by surprise. Or so I thought.
But then I met Markay Latimer, and I saw what she accomplished using what she calls her “retirement chart pattern.”
My jaw fell to the floor. I actually had to get a shovel to pick it back up. And then it fell to the floor again.
Markay was just a mom looking to make ends meet to fulfill her dream of going to medical school.
She built a $2,000 account (borrowing half from her family) and started using this pattern.
Just over two years later, the account had $2M in it! I’ve seen the reports!
I knew I had to get Markay in front of a camera to teach others how she did this, and she finally agreed.
Now, you can learn about the same chart pattern that she used.
In our State of the Market address, we discuss the crazy post-crash markets we’re experiencing, and dive deep into Markay’s incredible chart pattern.
She is, without question, the best stock picker I have ever seen.
Tap here to meet Markay and learn this pattern. I know you’re going to love her.
