This article is sponsored by one of our valued partners, Birch Gold Group.
With the rapid decline of the stock market over the last few days–down nearly 10 percent, or over 1700 pts, since Thursday–investors are looking for a safe harbor for their funds.
Some, like presidential candidate Donald Trump, are arguing that America is being punished for China’s economic sins due to poor planning and trade policies by the federal government. His solution, of course, is to “Vote Trump”.
Markets are crashing – all caused by poor planning and allowing China and Asia to dictate the agenda. This could get very messy! Vote Trump.
— Donald J. Trump (@realDonaldTrump) August 24, 2015
Other experts have been arguing for a long time that the stock market, which reached historic highs in June (over 18,000), was due for a correction.
Whether it is poor China policy or an overdue correction, something drastic definitely happened.
Peter Reagan, a financial market strategist at precious metals dealer Birch Gold Group, points a finger at the Federal Reserve Bank: “For the past seven years, the Fed’s loose monetary policies have flooded the market with artificial liquidity. This desperate attempt to prop up the economy seems to have helped in the short term, but now it’s contributing to the enormous level of volatility we’re seeing in the stock market these past few weeks.”
Former congressman Ron Paul predicted a steep decline for the stock market in June. “I think [the crash] is going to be much greater [than 10 percent] and it will probably go a lot lower than people say it should,” said Paul. “I don’t think it’s going to be just a correction,” he told CNBC.
Paul was right: the market is already off 12 percent from that high (now hovering in the 15,000s).
Discussing the fall in the stock market on Monday, Paul said compared to ‘08, the Federal Reserve “has so few tools.” Then, the National Debt was about $9 trillion, but it has doubled, with most of that being printed by the Feds. “[A]s people realize how much money printing there is, and how much debt accumulation there is, they are going to have to look for something they can hang on to.”
For Paul, one answer is precious metals. Gold, he noted, is holding its value and has gone up over $50 per ounce during the last month.
This correction in the stock market may go significantly more throughout the fall, if historic trends hold. The crash of ‘08 saw the market drop 48 percent from its high in May, lasting until March ‘09 before it began a slow recovery. In 1987, the stock market lost 23 percent of its value in one day alone.
A stock market plunge like the one we are seeing right now will have a direct effect on people’s IRA’s and 401(k)s.
So for those with a large level of exposure to the stock market, what hope is there to protect your savings?
Mr. Reagan offered one possible solution, saying that many Americans are now moving their retirement savings into a Precious Metals IRA. “If you believe that the stock market highs from the last year are unsustainable, or if you no longer want your IRA or 401(k) to be at the mercy of the volatility on Wall Street, moving into an IRA backed by physical gold and silver can make a lot of sense.”
To join the 1000s that are moving into physical gold each day in order to protect their savings from stock market volatility, request a free Info Kit on Gold from Birch Gold Group right now – there is ZERO cost and ZERO obligation to you. All you need to do is enter your details at www.birchgold.com
This post originally appeared on Western Journalism - Equipping You With The Truth