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Will the holiday season bring gifts, or a lump of coal, for alternative investors?
All signs point to the former. If you equip your portfolio with the right assets, you can position yourself for a very merry Christmas season.
The price of gold and silver currently sit at 30-day lows ($1,783 and $22.39 per ounce, respectively), while the price of Bitcoin is down (-16.63%) over the last 3 weeks.
In other words, Black Friday came a week late for alternative investors. We’re currently looking at deep discounts on assets that have historically provided critical portfolio protection during recessions and inflationary economies.
Plus, we’re seeing incredible market uncertainty on the horizon.
While it’s certainly welcome news that alternative assets have dipped, the worldwide proliferation of the Omicron variant indicates a serious threat to global market stability. If the virus becomes dominant in China, we could see our already-chaotic supply chain issues become further disrupted and usher in a major economic cool-down.
Positive Monetary Policy Developments in November
Fortunately, it’s not all doom and gloom out there this holiday season.
At a Senate Banking hearing, Fed Chair Jerome Powell admitted that inflation is no longer considered “transitory”. He added that the tapering of asset purchases will accelerate in the months ahead to combat inflation.
This is good news for alternative investors. It means that central bankers are finally treating our generationally-high inflation rate seriously (+6.2% October CPI). In response, we’ll likely see the liquidity-pumped stock market cool off. In turn, this may lead investors to seek safe havens in scarce inflation-resistant assets such as gold, silver, and cryptocurrencies.
U.S. CPI 2000-2021. (Source: The New York Times)
If you were on the fence about adding to your alternatives position, now may be the time.
The time to capitalize on rapid market growth may be over, and the time for safe long-term holdings might be now. With so much uncertainty in the market, you don’t want to get caught with a stock-heavy portfolio if market conditions continue to deteriorate.
Protect your wealth today. To get started, contact one of our top-rated cryptocurrency IRA companies or precious metals IRA companies. This way, you can shield your wealth from inflation and put the pieces in place for a more financially secure holiday season.
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.
