Today’s market seems like a great place to invest. Throughout the past several years, we’ve seen a recovery like no other. However, one big question seems to be popping up everywhere. That question is, “Can the bull market sustain itself, or are we going to see the bears coming in soon?” That’s a serious question when you start to think about your retirement investments. The reality is that if you’re in a traditional IRA and the bears do come rolling in, you could lose a good amount of money you were planning on using for retirement. So, today, we’re going to take a look at 3 major factors to see if the bears are coming soon; if so, a gold IRA rollover might just be a good idea after all.
Analyzing Market Sustainability
When I analyze whether or not the market will continue to move in the same direction, I like to look at current activity in the stock market, worldwide economic conditions, and geopolitical conditions. So, let’s see what’s going on with the three main factors.
Current Activity In The Stock Market – Currently, stock market activity seems great, but if we read between the lines, it tells us a different story. The fact that the bulls have been driving the stock market for a while is actually a double edged sword. While stock prices are nice and high, it’s also important to think about realistic valuations in comparison to earnings. Today, stocks are detrimentally overvalued based on corporate earnings. So, if you buy a stock today, you’re most likely going to over pay. This is one of the clear cut signs of a coming market correction.
Worldwide Economic Conditions – Thinking about the economy from our perspective, it’s easy to see that things are going well. However for the positive United States economy to continue to sustain itself the world economic outlook is going to have to get better. With regard to the economy, the bottom line is that one of our major trading partners, the Eurozone is struggling. As a matter of fact, the multi-country currency is swaying back and forth on the brink of a recession. If a recession was to happen in the Eurozone, it would definitely have a negative effect on United States markets.
Geopolitical Conditions – If you watch the news every day, you already know that geopolitical conditions aren’t at their best. Currently, we’re facing several main problems in the geopolitical sphere; including ISIS and other terrorist attacks, the Russia/Ukraine conflict, and the Saudi Arabia Oil price reduction done to put pressure on other countries.
After looking at the three major areas above, it’s easy to see that the stock market is indeed in danger of a correction; in which case, many with traditional IRAs will lose money! However, in down market times, the value of gold tends to go up. Therefore, by taking advantage of a gold IRA rollover now, you’ve got the ability to protect your investments from losses and actually realize gains if a correction does happen.