by | Nov 1, 2020 | Newsletters

This future looks bleak, no matter the outcome of this week’s election.

The chances of economic and social collapse seem higher now than ever before in modern history. Maybe you’ve missed the signs…

The Fed reports that commercial and industrial loan delinquency rates are at generational highs, thanks in part to excessive credit growth and a surge in household debt. Business debt is up 18.8% this year, and household debts are up 11.7% in the first three months of 2020 alone.

Don’t be surprised when you soon find that the days of easy credit are over.

Tax revenues are down, fraud rates are up (TransUnion reports a staggering 23% jump), oil prices have been slammed by supply shocks, and the Fed is committed to dropping rates to zero for the foreseeable future in a desperate attempt to keep markets liquid with new money. 

Home sales are down 25% from where they were at this point last year, the largest year-over-year decline since 1982. 

The stock market is chugging along on the back of a few overvalued tech companies. The S&P 500 is still at sky-high levels, but don’t be fooled. Given high unemployment, shuttered businesses on Main Streets across America, and decreased economy-wide demand, there’s no doubt that the stock market is disconnected from reality.

For how long can we keep up the charade that markets are stable?

Strict government-imposed lockdowns and suspension of civil liberties in Italy, Spain, and France have resulted in riots, looting, and violence. Is the United States going to share the same fate?

In the US, civil unrest in the form of rioting and looting has taken place in major cities such as Portland, Minneapolis, and Philadelphia. 

A recent report by a leading French think tank found that over half of Americans believe we’re headed for imminent societal collapse. In Italy and France, the numbers are even more alarming, at 71% and 65%, respectively. 

Can you remember a time when the fabric of society felt this fragile?

It’s time to hedge your bets and invest in safe haven assets. Amid the chaos this year, gold is up over 25% year-to-date. Silver is outperforming the stock market by a wide margin, and Bitcoin is having a heck of a year—up 84% since January.

As traditional markets reel under the weight of social and political upheaval, now is the time to invest in alternatives. Open a precious metals IRA or a cryptocurrency IRA today to diversify your retirement portfolio and close out the year on a high note.

 

Mark Turner

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.

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