Avoid Financial Crisis By Adding Hard Assets To Portfolio
To avoid the perils of the stock and bond markets and overcome a financial crisis, investors would be wise to add hard asset investments to their portfolio.
The success of almost any investment is dependent upon the performance of the global economy. If it fails to perform well, major industries like manufacturing and transportation can feel the ill effects. When that occurs, revenues and profits at leading international businesses — like Amazon and Apple — are affected, and the stock market values drop accordingly. This causes problems for investors who have not included hard assets in their investment portfolio.
When confronted with economic challenges, whether domestic or international, some traditional investments can cause investors to suffer enormous losses. During times of adversity, companies can experience a challenging time because of disruptions to their supply chain or a drop in consumer demand. This poor performance not only has a negative effect on investor dividends/returns, but the domestic and world economy as well. Investors should expect that this will have an indirect effect on their financial stability.
To avoid the perils of the stock and bond markets, and help them overcome a financial crisis, investment seekers would be wise to add hard asset investments to their investing portfolio. The demand for (and value of) tangible items have proven to increase during times of financial trouble, especially in the past decade. For example, since the global financial crisis erupted in 2008, investments in shipping containers have outperformed the S&P 500.
During a worst case scenario, hard, tangible assets — like investments in real estate, collectibles, or shipping containers, have proven they can hold their value. In fact, in the face of economic uncertainty, they have been known to significantly increase in value. These are the investments that will protect an investor’s wealth during a financial meltdown.