Unless you’ve been living in a cave for the last couple of years, you might have noticed there is a lot going on in the world right now. To say that we’re not on the brink of some serious happenings would be naïve.
Across the globe, government responses to the virus have had dramatic and potentially long-lasting economic and social effects.
While we may not be sure how things will turn out, what is apparent is that IT IS NOT ABOUT BEING AFRAID; IT IS ABOUT BEING PREPARED.
Which brings us to Dennis Rodman.
Dennis Rodman’s ability to rebound a basketball made him, statistically, one of the most valuable players in NBA history. Even though he couldn’t score, his rebounding dramatically improved the offensive efficiency of the players around him helping his teams win five championships.
Simply put, Dennis Rodman getting more rebounds gave his teammates more opportunities to shoot and score.
What does this mean in terms of your investments? You’re going to want to have something that can zig should everything else zag.
It used to be that you’d want to own some bonds when stocks go down and vice versa. For anyone who’s paid attention, that simply hasn’t been the case for quite some time.
All generations get things wrong and have delusions. When I first started as a Financial Advisor in 2000, I distinctly remember meeting quite a few investors who considered themselves diversified because they owned several tech stocks as opposed to a few. The ensuing “dot-com bubble” proved their strategy incorrect.
Now it seems obvious not to be too overweight in any one sector, especially in regards speculative companies that don’t actually make money (i.e. Pets.com).
The question to focus on, however, is what will seem obvious in a few years that isn’t right now?
This brings us back to Dennis Rodman. What could we add to our investments that will give us an opportunity to shoot more, or more specifically, retain our purchasing power should our stock and bond investments diminish in value?
What “team member” might you want to add to your holdings that can give you peace of mind should things continue to get weird.
Two suggestions, in my humble opinion, are physical gold and income-producing real estate.
Who is the Dennis Rodman of your portfolio?
Ready to find out, or draft a new “rebound master?” Schedule a call with us today, and thank yourself tomorrow.