INFLATION AND INTEREST RATE HIKES WILL AFFECT YOUR ASSET PORTFOLIO
Posted By: Dr. Vernon Thomas, February 23, 2022
Easy monetary policy caused the bull run to start. Tightening it will cause it to end.
The feds have been pumping money into the stock market for years with zero interest rate causing one of the best bull markets in history.
This year this looks like it will end. The U.S. fed is looking at a minimum 4 interest rate hikes this year. The overinflated stock bubble looks like it could be one of the worst drawdowns in history. Worse than the dot.com worse than the global financial crisis of 08! Here is hoping that it’s not, but now more than ever investors are looking to diversify their portfolios in order to manage a potential 4 – 5 year downturn!
For those looking for Asset Diversification as well as Wealth protection, there are various areas you can look to, Real Estate, bonds, and Hard Assets.
For Investment Privacy, colored diamonds, gemstones and watches should be at the top of the list.
Top gemstones and watches have constantly matched or outperformed other asset classes for decades and have proven time and time again to be inflation proof.
Financial diversification is a sound strategy in 2022. And if done right, Wealth Protection can also come with no discernable decrease in double digit returns!