During election season, people turn their attention on governance both nationally and locally. At some point in our collective mulling over of “things we oughta’ fix,” the discussion of the Federal Reserve and National Debt get a moment in the sun, if only for a few minutes.
The reason I bring this up is that maybe this time, it really is different.
Because the pandemic has caused a systemic issue, regardless of who’s in office, the only solution the Fed has is to print money and “paper over” the problem. Unfortunately, the topic isn’t given enough attention, and it creates blind spots for the everyday investor.
In a recent interview with Janet Yellen about potential economic problems, she stated a primary concern was that “climate change may cause large changes in asset prices.” Really, Janet?
You forgot to mention the Fed just printed 3 trillion dollars in three months!
Precious metals and now crypto currency are potential hedges against inflation. Purchasing these items can, at the very least, be tantamount to buying insurance for your cash savings.
Perhaps consider having a combination of gold, silver and crypto purely from a protection perspective?
For example, if you have $100,000 in savings, maybe it’s wise to have $6,000 divided in a combination of $2,000 gold, $2,000 silver, and $2,000 split between a host of popular crypto currencies.
Full disclosure, at the time of this writing, I do not own any crypto. However, I don’t think it’s too late for any of these “currencies” to rise dramatically in value.
Obviously, these may all very well drop in price and (in the case of crypto) may literally drop to zero.
It’s silly for anyone to think they know exactly what the future will bring, but the objective remains the same: protect your purchasing power.
Our mission is to help passive investors become financially free by providing high quality alternative investments —if we can help you in that way, it would be an honor to do so. Feel free to schedule some time for us to chat.