The global financial system has changed forever. Investors can no longer rely on traditional stock market investments to grow their assets and provide a consistent return. More and more, people are looking for new ways to protect their buying power and keep up with rising inflation and the very real possibility of another, even deeper, recession or even depression in the U.S. economy.
Jeff Cox, senior writer for CNBC.com, recently interviewed financial industry veteran and managing director of the world’s largest bond fund Bill Gross about the state of the economy and the results are rather alarming. “Stocks will no longer generate the kinds of returns they've had over the past century, ending the ‘cult of equity’ that has been Wall Street's mantra for generations,” Gross reported in his most recent market analysis. In the article, Gross also warns that the stock market's consistent annual return will be reduced to a "historical freak" that will never be repeated. “A global economic slowdown will lay waste to the pattern, consistent since 1912, of the market averaging 6.6 percent annual returns,” Gross explains.
Further complicating the matter is the looming “Fiscal Cliff” that the U.S. government is facing at the end of this year. If lawmakers allow this policy to take effect, a wide range of tax increases and spending cuts will immediately become the law of the land, weighing even more against any potential recovery and possibly plunging the country into the type of economic and social chaos that we have seen recently in Europe.
All this bad news points to the importance of moving funds away from “paper” or “digital” assets, out of underperforming investments, and into hard assets that can weather the storm of difficult times and austerity. The United States Gold Bureau is recommending that investors act now to acquire Certified Coin Investments that can move counter-cyclically to the rest of the economy, actually increasing in value while traditional financial vehicles crumble around them. This is the beauty of gold and it’s something that every single American should be doing now to prepare for hard times ahead.
View original story at CNBC.com