If you owned gold and silver in 2016, you’re probably patting yourself on the back right now. Traditional stock markets are basically flat for the year, while both gold and silver are in the positive double digits.
According to recent market research, your diversification strategy could literally save your bacon if you plan to retire in the next few years.
Why? Research is showing that there is no way the stock market over the next seven years will produce a return like the last seven.
Consider this: stocks have delivered about 19% per year since the last bear market ended in March 2009.
Remarkable! Especially since economic growth has been remarkably weak over the same period.
In fact, corporate sales have grown less than 2% per year since 2009. If you look at growth in corporations’ book value, replacement cost and gross domestic product, you’ll find that none of these indicators have come close to matching stock market performance over that time.
What has grown is corporate profitability: earnings per share are up about 13% annually since 2009. This new profitability comes from stagnant wages, workforce layoffs, automation and technology efficiency.
But, ask yourself: how likely is it that corporations will be able to squeeze further profit gains without causing mass employee walkouts?
The answer is: not very likely. Especially since economic growth is so puny that the Federal Reserve is delaying raising rates!
Feeling more optimistic than this? I’m glad to hear it. Even so, you can see why I always recommend that investors keep some physical precious metals as part of your retirement picture.
I urge you to consider this and call us at 800-462-0071 to learn more about your options.
Gold and Silver: Analysts Weigh In
Many analysts are noting the strength in the gold market and looking ahead:
JP Morgan has targeted gold at $1325 per ounce and silver at $18.66 per ounce by the end of 2016
OC Banking Corp is forecasting $1400 per ounce for gold in 2016
UBS Bank is calling for gold to hit $1300 per ounce in 2016
TD Securities is forecasting silver at $18.50 per ounce in 2016
DON’T WAIT TO MAKE YOUR MOVE
In times like these, having a little gold or silver in the home safe is of considerable comfort to anyone, regardless of your exact view of the markets ahead, your political leanings or even your age.
