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June was a tumultuous month for global markets.
Last month, the World Economic Outlook report forecasted -4.9% losses to global GDP for 2020, down 1.9% from April.
Economic lockdowns have shuttered the world’s economy. As some states have started to reopen, others are seeing surges in COVID-19 cases, especially within emerging markets in Latin America.
Although worldwide cases of COVID-19, the disease caused by the novel coronavirus, have now surpassed 10 million, some analysts predict that the North American equity market is poised for a July rally.
Through Q1 2020, the U.S. economy shrank by a whopping 5% and analysts suspect that the worst is still yet to come.
At the same time, unemployment numbers are predicted to improve very slowly throughout the year as U.S. COVID-19 cases skyrocket in certain parts of the country.
The future of the global economy remains uncertain, to say the least, and investors would be wise to adopt a risk management strategy suited for today’s unprecedented economic climate.
The key is diversification, a critically important risk mitigation factor for your investment portfolio.
To achieve true diversification, you need to spread risk across a variety of asset classes and investment vehicles. These include alternative assets, such as precious metals and cryptocurrencies, in addition to traditional assets like stocks and bonds.
Financial and systemic risk has never been higher in recent history. Diversification can help you manage risk to keep more of your wealth during down markets or periods of volatility.
If you’re interested in finding the best alternative asset vendors for today’s uncertain investment landscape, I suggest checking out these reviews of some of the best precious metals IRA companies and cryptocurrency IRA companies. Each of these companies have been closely vetted so that they meet the highest quality control standards.
Mark Turner is an author and editor at Sophisticated Investor. He has over two decades of experience in the financial industry as a broker in both Chicago and New York and has written for several top tier publications. He currently covers the topics of alternative investments, geopolitical events, US economy, portfolio diversification and others.
