Gold and Silver Fit Your Defensive Portfolio Strategy

If there’s one thing Wall Street investors can count on, it’s that the market always corrects, and sometimes it crashes. Stock-pickers pride themselves on finding equities that stay afloat even during tough economic times, from gold streaming stocks to legacy companies that thrive in recessions, such as Kimberly Clark (the makers of Kleenex, Huggies, Cottonelle – essentials Americans always need to buy) or Coca-Cola and Anheuser Busch Inbev. It’s not for everyone though – anyone who’s not a professional investor can’t reasonably commit the time to research companies thoroughly enough.

But just because you’re more of a mutual funds-and-bonds type of investor doesn’t mean you shouldn’t have a strategy for dealing with a market correction. Major crashes seem to be speeding up, with crashes recorded in 1987, 1999-2000, and 2008. Already 11 years on from the last big crash, many are getting ready for the next one.

So-called “defensive investment strategies” feature diverse solutions, but they all aim for a few key features:

  • Balance between riskier and conservative assets to mitigate stock losses and prime your portfolio for recovery;
  • Include inflation hedge assets that won’t lose value when cash does;
  • Reduce third-party risk by increasing direct control over assets.

Among the assets that do this best are precious metals, specifically gold and silver.

Gold and Silver Are Safe Havens

Market correction is one thing, a bump in the road before a recovery, but economic catastrophes can wipe out portfolios and retirement savings. Precious metals are uniquely positioned in a catastrophe due to the confidence investors have in them. You see it in countries going through hyper-inflation or economic collapse: everyone with the means starts putting their money in gold.

A Weak Dollar Is Good for Gold

There are several reasons a weak U.S. dollar bumps up gold prices. First of all, the metal is sold in U.S. dollars, so when the dollar’s value weakens, it’s easier for foreign markets to snap up, pushing up demand.

Second of all, it means that one of the world’s top safe haven currencies isn’t doing what it should do – preserve relative value. When that’s the case, investors, don’t stick around for long, seeking other assets that will meet their goals.

Bullion Is Easy to Buy

Other conservative assets like real estate can be lengthy transactions involving a lot of legal steps and paperwork. By comparison, you can get your gold and silver online from trustworthy dealers in short order.

Government Debt Could Be a Big Crisis

In the aftermath of the 2008 financial crisis, the world saw how bad sky-high government debt can be, as Greece had to be bailed out by its EU partners, and bigger economies like Italy and Spain came precariously close to the same fates.

With U.S. government debt hitting $22 trillion, some are wondering if a debt crisis could cripple the world’s biggest economy. A contraction caused by government debt would leave few assets besides gold unharmed.

Both precious metals have a place in your portfolio. Few assets are better at achieving defensive strategy goals. Make sure you invest before the next market crisis.

*** SPECIAL ALERT — June 27, 2020 — THREE of this Year’s Motley Fool Stock Picks Have Already Doubled! ****

We have been tracking ALL of the Motley Fool stock picks since January 2016. That’s 4+ years, 54 months and 108 stock picks. As of Friday, June 26th 3 of their 12 2020 stocks picks have already doubled (TSLA, ZM, SHOP). In addition, 4 of their 2019, 8 of their 2018, 7 of their 2016 and 10 of their 2016 picks have also doubled. Best of all, over these 54 months, the average stock pick is up 111%. That beats the SP500 by an average of 87%. And that’s even accounting for all of this COVID mess that has wreaked havoc on some stocks but presented opportunity for other stocks. THAT is how the Fool does so well!

  • Shopify (SHOP) – April 2, 2020 pick and it is already up 163%
  • Zoom Video (ZM) – March 19, 2020 pick and it is already up 107%
  • DexCom (DXCM) picked Feb 20, 2020 right before the market crashed and it is still up 26%
  • Tesla (TSLA) picked January 2, 2020 before the crash and it is up 123% compared to the SP500 -7% so it is ahead of the market by 130%
  • HubSpot (HUBS) picked December 5, 2019 and it is up 46%
  • Netflix (NFLX) picked November 21, 2019 and it is up 42%
  • Trade Desk (TTD) picked November 11, 2019 and up 111%
  • Zoom Video originally picked Oct 3 and it is up 234%
  • SolarEdge (SEDG) picked September 19, 2019 and it is up 44%

Now, no one can guarantee that their next picks will be as strong, but our 4.5 years of experience has been super-profitable. They also claim that since inception, their average pick is up 424% and now we believe them. You sure don’t want to risk missing out. Many analysts are saying that we have passed the bottom of this COVID crisis and stocks will recover quickly. So make sure you have the best stocks in your portfolio.

Normally the Fool service is priced at $199 per year but they are currently offering it for just $99/year if you click this link

CLICK HERE to get The Motley Fool’s Stock Picks for just $99 per Year! 




GET UP TO $1,000 IN FREE STOCK

WHEN YOU OPEN A ROBINHOOD BROKERAGE ACCOUNT

Robinhood was the first brokerage site to NOT charge commissions when they opened in 2013. They just past 10,000,000 accounts and to celebrate they are offering up to $1,000 in free stock when you open a new account.

Here’s the details: You must click on a special promo link to open your new Robinhood account. Then when you fund your account with at least $10, you will receive one stock valued between $5 and $500. Then, you will get a link to share with your friends. Every time one of your friends opens an account, you will receive another free stock valued between $5 and $500. Click here to learn more about this Special Robinhood offer.

Claim your free stock NOW

(before it’s too late)

Leave a Reply

Your email address will not be published. Required fields are marked *