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Author: mandmweb

Practical Gold Investments

December 2018 was a tough month for the stock market. In fact, the S&P 500 started falling in October of 2018. An aging bull market, a trade war that could be long term, higher interest rates, and falling profits are all indicators that the long run up in stock prices is over. When a bear market is on the horizon, one of the options for an investor is to take profits from stocks and look for some practical gold investments. The key here is the word “practical.” There are inefficient and difficult ways to invest in gold and then there are practical gold investments. Here are some thoughts on why and then how to invest in gold. Why Invest in Gold? A true “gold bug” believes that in the end all paper (fiat) currencies will become worthless and that gold will hold its value. These folks buy gold bullion with the intention of holding it forever. Others jump on the bandwagon when gold is going up in price, only to sell when the price of gold corrects. Why you would want to invest in gold can vary and depending on your reason there may be different practical gold investments for you. Investopedia writes about 8 reasons to own gold. Here are their 8 reasons. Gold holds its purchasing power over the decades and centuries. When the dollar weakens gold...

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Investment Risks for 2019

The stock market has been volatile and ended 2018 badly as the worst year in the last ten. Has the market gotten the jitters out of its system or is more trouble in store? What are the investment risks for 2019 and how can you prepare your investment portfolio? Investment Risks for 2019 The trade war will continue and get worse. Interest rates will rise excessively due to the Federal Reserve. The global and U.S. economy will slow down. As a result the stock market will continue to be volatile and experience losses. Investment Risks for 2019 from the...

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How to Protect Your Investments from a Recession

The trade war shows signs of becoming long term and it is taking its first bite out of Chinese manufacturing. Many economists are predicting a global recession in the coming year and in this interconnected world the USA will not be immune. The question is how to protect your investments from a recession. How to Protect Your Investments from a Recession The first choice in protecting your investing capital is to convert to cash or cash equivalents such as we mentioned in our article about how to invest without losing any money. US bank accounts are protected by Federal...

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How Will Higher Interest Rates Affect Your Investments?

The US Federal Reserve Open Market Committee raised interest rates again last week by a quarter of a percent. How will higher interest rates affect your investments? There are several ways that that higher rates will affect your portfolio both immediately and over the long term. Here are a few thoughts on the subject. Immediate Effects of Higher Interest Rates on Your Investments U.S. Treasuries Corporate Bonds Dividend Stocks U.S. Treasuries and Corporate Bonds If you currently have U.S Treasuries, AA, or AAA corporate bonds in your investment portfolio, they just became a little less valuable when the Fed...

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What Investments Should You Choose Right Now?

There is always a risk in giving or receiving investment advice. Many times do we read that an expert is making suggestions based on “what their charts show.” There may be useful information in their research but there is also a huge fudge factor. This is because the “expert” is not really giving you specific advice but only relaying what their “chart” might be predicting. Meanwhile, as the market is heading downward every day, you are wondering this, what investments should you choose right now? General versus Specific Investment Advice General investment advice, when it as some value, is based on past performance. For example, money invested in the US stock market and left there over time tends to out-perform other investments such as bonds, real estate or bank deposits. So, is it good general advice to invest in stocks? Yes, it is. But, in order to correctly follow this advice you need put money in an index fund that follows the S&P 500 or perhaps the Dow Jones Industrial Average. And, you need to leave it there through good years and bad. This is because individual investors are typically not very good at timing the market. An interesting article in The Balance shows us 20 years of stock market returns by year. Negative stock market returns occur, on average, about one out of every four years. Historical data...

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