Want To Become A Better Investor?
Yes, I Want To Make More Money
I Do Not Want To Make More Money.
The latest bull run in the stock market covered nearly 11 years of steady growth. Unfortunately, nobody predicted just how devasting the coronavirus pandemic would be to the global economy. Stocks took that initial dip in February. Faced with a daunting recovery, the current economy is officially in a recession.
During uncertain times in the stock market, investors traditionally turned to gold as a safe alternative. In recent years, cryptocurrency has been added to list by more adventurous investors as a safe hedge. The goal for anyone looking to preserve wealth during uncertain times is twofold:
Leaving your money as cash was not a recommended solution since it will lose value over time. Even though the world is rather scary right now, hording cash is a short-term strategy under any economic conditions.
Investors should also avoid knee-jerk reactions to news headlines. By eliminating the emotional aspect of investments, you can make some sound financial decisions. These decisions should address both short-term and long-term needs.
Often times, investments receiving the most attention are the ones not linked to the stock market. That is why precious metals such as gold and silver top the list. Douglas Boneparth is the founder and president of Bone Fide Wealth in New York. His viewpoint on gold offers the following insight:
Stacy Francis is a CFP that is also the president and CEO of Francis Financial in New York. Her thoughts on gold included:
“You can hold it, you can touch it. But compared to investing your money in the S&P 500, it hasn’t been able to keep up long-term.”
Even Warren Buffet has expressed his doubts on gold in the past. As one of the most successful investors, he has referred to gold as an “unproductive asset.” He notes that it does not pay interest like bonds or dividends like stocks.
The first thing to keep in mind is security. BTC needs to be safeguarded since it can be stolen. The other downside is that very few regulations are in place to protect crypto investors.
Ms. Francis is not opposed to cryptos playing a certain role in an investment portfolio. However, you need to be aware of all the risks. She went on to add:
“Thinking long-term is what allows people to meet their goals. It’s not as exciting as winning the lottery…but sometimes boring is a good thing.”