By: Aaron Lavinthal – 11/11/16

Whether you are elated or enraged that Trump has emerged victorious as our new President of the US, the geopolitical and economic issues remain unresolved presently.  As the times change, the issues change and policies that go with it.  Economic climates change, reactions change and therefore your strategy for portfolio investing and retirement must change as well.  The question is, will you complain about the issues or do something to ensure these issues plaguing our economy don’t negatively affect your portfolio?


The Past:

As an investor, we have been conditioned to invest as the masses do.  Traditional investment vehicles that yield roughly 6% annually have been the norm and all revolve around large banking institutions in bed with Wall-Streeters (thanks to the repeal of Glass-Steagal) pitching Americans on “conservative” paper-backed investments.  For  baby-boomers entering the retirement phase of their lives, 6% just doesn’t cut it.  Not only does 6% not keep you ahead of inflation, but since it is not diversified in assets other than paper, should the paper markets fall apart (like it did in 2008), an entire life savings can be wiped away in a matter of weeks.  There is a reason why the phrase exists “history repeats itself” and most retirees and savers do not have extra years to go back to work or wait for markets to recover.  It took roughly 8 years for the recovery from the financial crisis.  Throughout the past decade plus, we have only made the problems worse, adding to the national debt to the reported tune of $20 TRILLION!  MATHEMATICALLY, THIS IS IMPOSSIBLE FOR US TO ERASE!

The Present:

Volatility and uncertainty plague the paper markets.  Hedge fund managers and billionaires are left scratching their heads as to where they can find yield for their clients.  Additionally, not a day goes by where we can’t open a news resource to hear talks of tumult ahead:” recession, correction, global epidemic, market collapse, bubble burst, etc.”  There has been one constant in the financial world, move part of your portfolio into precious metals!  Trump is a huge proponent of gold and during economic uncertainty, the precious metals asset class is your best friend.  In a world of 6% yield, do you think it’s odd the person you pay to oversee your wealth neglected to put you in an asset class that has done roughly 20% this year?  Who doesn’t want wealth insurance when the smartest minds in the world are at a loss as to how to make you more money?

The Future:

It’s hard to imagine a future with so much happening in our present.  We become inundated with work, daily tasks, family and decisions that we believe require our immediate attention (and some do), however it is the cooler head that prevails.  We as humans can methodically break down tasks and to-do lists, prioritize what’s necessary and look at things from an objective perspective rather than an emotionally subjective response.  If we were to apply this methodology to your investing, it becomes apparent that the “norm” just won’t suffice.  Depending on your age, income status, relationship status, family status, employment status and investment/retirement perspective, every individual has a different set of goals that need to be achieved.  How do we see through the smoke in front of us and giant thundercloud hovering a few feet away?  Take the emotion out of your strategy.  Common sense and basic fundamentals of investing have always taught us “don’t put all your eggs in one basket.”  By merely moving some of your eggs into different baskets, you can mitigate risk based on lots of different scenarios which would have otherwise completely obliterated your entire life’s work.  When viewing our lives, we don’t take large risk without insurance (car, life, home, health, etc.).  Do you believe everything you have worked your life to save, invest and put away for retirement is worth insuring?  By taking a different avenue to view your portfolio, we ALL need wealth insurance.  Precious metals offer several options to insure your portfolio.  We’re sure your financial advisor is a nice guy/gal, but do they have the power to move markets in your favor and predict the future?  It’s not about severing ties but rather looking out for yourself.  Precious metals will afford you the opportunity to truly diversify and insure your portfolio, savings and retirement without sacrificing a relationship and more importantly, EVERYTHING you gave to the paper markets to keep “safe.”  They don’t call gold a “safe haven asset” for nothing!  Call us at Scottsdale Gold & Silver to schedule a free consultation with an experienced Wealth Coach and see how YOU CAN MAKE YOUR PORTFOLIO GREAT AGAIN!