WTSHTF Insurance

That was easy. 100% of readers who responded to our informal survey yesterday said they own gold in one form or another:

“Yes, I own physical gold: 18.5 ounces, mostly 1 ounce and 1/10 ounce Maple Leafs. Plus 445 ounces of silver in junk coins.

At today’s prices, that’s $24,205.40 in gold and $6,848.55 in silver. Nice.

And this is the first reader to riff on a theme…

“I hold gold in case the SHTF. And it is a good investment that will hold value over time and probably increase in value, unlike my 401k or IRAs.”

This reader says something along the same lines:

“I own gold coins in 1oz and 1/10 oz size and both pure and 90% silver coins. The reason  — when the collapse comes — (and it will) toilet paper and hard assets will be worth more than any hundred-dollar bill.”

Another reader with a variation on a theme:

“I hold both physical gold and silver and gold-related investments. I believe precious metals to be a very good hedge and… WTSHTF it will be the best insurance one can have.”

This from a long-time precious metals enthusiast:

“I have owned gold since 1978 when I bought Krugerrands. I sold 80% in Jan. 1980 on the day gold hit $825 or $850. I have owned gold and silver stocks for some time and prepared to move more money into them upon a breakout.”

Your Rundown for Wednesday, March 20, 2019:

Diversification’s Not A Four-Letter Word

Americans saving for retirement need to be careful of a major pitfall — being too heavily invested in equities.

“If there was a market downturn,” says Fidelity VP Meghan Murphy, “they could lose a significant chunk of what they’ve worked so hard to save.”

And apparently baby boomers’ retirement accounts are most at risk…

chart

A recent Fidelity study shows baby boomers’ accounts, in particular, are pegged to the equities market up to 51%. And that’s just the average. The study finds 8% of boomers have all their eggs in the equities basket.

The opposite — on the other hand — isn’t a workable solution either: being so risk-averse that the only thing you trust to “grow” your retirement account is bonds (yawn).

“You can’t go to 100% bonds because any growth will be eroded by inflation,” says Nate Creviston at Capital Advisors. “Even with our most risk-averse clients, we still need to have some allocation to stocks.”

Absolutely. Ways to build out a diversified retirement portfolio? Mixing traditional bonds, master limited partnerships, real estate investment trusts (REITs) and — of course — hard assets along with exposure to equities is prudent.

When saving for retirement, no one can eliminate risk entirely but, over the long-term, a diversified portfolio is a more secure portfolio.

[Ed. note: Want to learn more about diversifying your retirement account with hard assets? Sign up for our exclusive updates by clicking here…]

Market Rundown for Wed. March 20, 2019

S&P 500 futures are down about 2 points to 2,830.80.

Oil is down 26 cents to $58.77 per barrel.

Gold’s up $1.90 to $1,308.40 per ounce.

Bitcoin’s finally broken through its resistance to $4,021.56.

Have a good day. We’ll talk tomorrow.

For the Rundown,

Aaron Gentzler

Aaron Gentzler

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Aaron Gentzler

Aaron Gentzler is the publisher of Seven Figure Publishing. He is also the editor of The Rundown and has been with Agora Financial / Seven Figure Publishing since 2005. He's been covering technology and markets for over a decade.

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