“While the stock market has been reaching all-time highs in recent weeks, those numbers are deceiving. Many experts believe that stock markets are in a bubble, and that the markets are on the verge of a crash. Bond markets, too, have been in a years-long bubble because of trillions of dollars of central bank bond purchases. Once central banks stop buying (and they will), the bond bubble will collapse too.” -Ron Paul, Former U.S Presidential Candidate
The recent announcement from the Federal Reserve that it plans to shrink its balance sheet has got some investors nervous that interest rates may be about to significantly increase. This creates a substantial risk for those who are invested in rate-sensitive products, particularly ETFs and mutual funds that invest in companies that borrow extensively.
“The effects of such a war would be deeply felt by those seeking to save for the future, those hoping for a happy and uneventful retirement…” -Ron Paul
The economy is very much influenced by the events going on in the world. The Brexit vote, for example, caused both the pound and the euro to weaken considerably, and the dollar to grow stronger by comparison. The announcement of a federal interest rate hike is nearly always met with a decline in the stock market. Everywhere you look, current events have an impact on economic factors around the globe.
Inflation is a major drain on investment portfolios — and indeed, almost any other financial product. Many people don’t understand fully how inflation works, so it’s often ignored. However, when a portfolio doesn’t get sufficient return, it can wind up being worth substantially less than you think in actual terms, making it important to pay attention to pressures like inflation.
Our economy is very much governed by its surroundings. The announcement of a federal interest rate hike often causes the stock market to decline, even before it goes into effect. News of Brexit last year caused both the pound and the euro to plummet in value, even though Britain was still nearly a year away from taking even the first steps towards actually leaving the EU.
With economic stability in question across the globe, a growing number of investors are looking for retirement savings options outside of traditional 401(k) plans or IRAs. Many people are turning to gold and silver IRAs because precious metals have always provided foundational security in times of uncertainty.