tagged w/ Investment News
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The S&P 500 is down more than -9% from five years ago. If you haven't already, maybe it's time to consider moving your money out of stocks, and into some of these alternative investments.
Gold
When inflation besets the economy and the dollar starts to lose its value, gold is traditionally the best proverbial mattress in which to stuff your cash. Between 1976 and 1980 inflation rose at a rapid +8.84% per year, a significant move by any standards. This means that if you had literally stuffed your cash in a mattress during this decade, it would have lost nearly -30% of its purchasing power!
On the other hand, the value of gold increased +369% during the same period (after correcting for inflation). As soon as investors regained confidence in the dollar, gold bullion quickly lost nearly -50% of its peak value. Still, investors who got in before the bubble made a handsome profit.
To compare, gold appreciated +109.3% from 2006 to 2010. This time the gain was due to increased uncertainty surrounding debt and equity markets alike. During the previous great spike in gold prices, it was more difficult to jump on the bandwagon, as the only way to gain exposure to the commodity was to own physical bullion. Today, it is easier to own gold through an investment in an ETF such asSPDR Gold Trust (NYSE: GLD) or via options and derivatives.
READ MORE: http://globalpoliticalawakening.blogspot.com/2010/11/get-out-of-stock-market-and-into-these.htmlThe S&P 500 is down more than -9% from five years ago. If you haven't... more
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