The stock market is a scary entity these days. Unfortunately, the combination of ugly economic data, rumored market manipulation and Federal Reserve activity has created a market that seems more like a powder keg than a normal-functioning market of buyers and sellers. With tons of Americans having their net worths tied up in the stock market, the risk is high for a huge drop in assets for millions of Americans.
Should You Bail?
You need to do a full risk-assessment on your financial life. Ask yourself the following questions:
- How much of my net worth is tied up in stocks?
- How much of my liquid net worth is tied up in stocks?
- What happens if the stock market drops by 50% similar to how it did in 2008?
- What other assets am I invested in that are outside the financial markets?
Gold & “Real” Assets
Do you own any gold? Or other precious metals? These are important alternatives to cash and other paper assets. For a more full understanding on a defensive financial strategy known as the Alpha Strategy, check out the link. This strategy will help you diversify out of the financial markets and paper assets into real assets such as precious metals and consumer goods. It warrants a close examination.
Related posts:
- Should You Buy $1500 Gold? With precious metals on a tear, it is a hard...
Related posts brought to you by Yet Another Related Posts Plugin.
Stocks