Let's Talk... Hard Assets!
I get questions weekly about how hard assets fit into your overall portfolio. I will discuss two hard asset classes and give my opinion on how they should perform in this type of economic environment. Please keep in mind that these assets are not for everyone and you should consult a financial professional before investing.
First, gold. Physical gold has been a store of wealth for 1000’s of years. It’s always been worth something. I remember buying gold for $300-$400 an ounce 20 years ago. The negatives on physical gold is that it doesn’t pay a dividend and it costs to store it. If you want to know if gold is going to go up, ask yourself if the dollar will be weaker or stronger in the future. I believe the dollar will be weaker due to budget deficits and increased stimulus that will add to an ever-growing national debt.
Second, real estate. Everyone needs a place to live. If you’re able to buy a house, mortgage rates are at an all-time low as of December 30, 2020. It can be an easy way with a potential to build equity. If you can buy real estate that pays you a dividend (rental real estate), even better. If you own a house, now may be a good time to refinance. Keep in mind that you don’t need to start the term of the loan over but you can refinance for what you have left on your loan. That’s money in your pocket. I analyze real estate the same way I look at gold with the added examination of how the economy is doing now or expected to do in the future.
The content in this material was created for educational and informational purposes only and is not intended as an investment advice.
The opinions voiced in this material are for general information only and not intended to provide specific advice or recommendations for any individual.
The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
