Because a persistent rise in inflation and steady decline in interest rates have characterized the last three decades of economic turmoil, investors have been inspired to seek the safety and security of hard asset investments, to improve the overall performance of their investing portfolio. This has been especially true, when investors have stopped to consider the long-term performance of their own retirement or savings plan, and realized it was time for a positive change.
With challenges and volatility in today’s markets, investors are confronted by a great deal of uncertainty when trying to determine the best asset allocation for their retirement or savings plan. The trouble with many portfolios is that when investors develop their investment strategy, their asset allocation is traditionally focused on three key asset classes: stocks, bonds, and cash. While stocks and bonds have demonstrated substantial total returns in the past, investors would be wise to assume that returns in the future will not match a particularly favorable time in the past, and should therefore consider real estate investments, investing in gemstones, precious metals, or other such tangible, hard assets.
Asset allocation has traditionally focused on three key asset classes: stocks, bonds and cash.
In comparison, hard assets have demonstrated that they can be relied upon to provide security during a recession, protect investment principle against inflation and even prosper during a crippling depression.
Inflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair. – Sam Ewing
The fact of the matter is that most members of the investment community cannot afford a shortfall in the forecast net value of their investing/savings plan. Therefore, as the global investment landscape continues to change, so too must the asset allocations that drive the performance of an effective investment, retirement and/or savings plan.
With more and more positive results (and profits) flowing in about the performance of these investment alternatives, investors are recognizing the value of accumulating and maintaining a diversified portfolio of hard asset investments, and quickly learning that this approach has proven to perform well in all phases of economic performance; regardless of good times or bad. As such, the widespread interest and over-all adoption of hard assets among members of the investment community has grown in recent years, and inspired a keen interest in tangible items like gemstone investments and investing in real estate; to help balance the stock market risks and the poor performance of government/corporate bonds.
It’s tangible, it’s solid, it’s beautiful. It’s artistic, from my standpoint, and I just love real estate. – Donald Trump