Life is full of ups and downs, both personally and financially. Though these ebbs and flows are unavoidable, by adhering to a long-term strategy, diversifying your portfolio and remembering economic fundamentals, you can weather any storm. Here are 5 ideas to protect your assets in the event of an economic crisis.
Gold and Silver Are Always Valuable
The United States Constitution defines the dollar in terms of its weight in gold and silver. This means in theory that every dollar is supposed to have an equivalent amount of gold and silver. Gold and silver are needed for industry, jewelery and currency. It never goes out of style. Get gold and silver investment advice before running out and sinking all of your capital into precious metals, but understand the viability of having them as an important part of your portfolio.
Diversify Your Holdings
People like to be part of a crowd. When there is a bull stock market, then statistics, news and prices will follow the same bull pattern upwards. The same concept can pull the trends downward. Diversification protects you when the up cycle turns to a down cycle. Along with investing in the market and getting into precious metals, consider investing in real estate. Owning a property that can generate residual income in the form of rent will ensure that even if the market fails, you will still have a source of income. A diversified portfolio of stocks, real estate, and precious metals guarantees that you will always have a dependable income stream.
Recession Proof Assets
Another great idea to keep your self protected is to invest your money in assets that are basically recession-proof. Even when the economy is in dire straights, there are certain industries that are almost impervious to the negative effects. When the economy gets bad, the first things to go are the unessential goods and services. Look into investing in goods and services that are absolute essentials to human survival and you will always have customers.
GPS Lock box
With the continuing advancement of technology, one wealth protection method that has increased in popularity is the GPS lock box. You can take gold, bonds, and anything else of value and place them in a secure lock box. You then take the box to a secret and secure location either on your own property or out in the wilderness and bury the box. Once the box has been buried, you note the GPS coordinates and leave, using the coordinates as a modern treasure map when you decide to dig it up later.
Trust Long-Term Fundamentals
The wealthy understand the difference between technicals and fundamentals. The technicals will deliver solid short-term profits based on the herd mentality. But these short-term bursts are not wealth. Wealth consists of long-term assets you purchase using profits from such short-term investments. Don’t ever panic and shed certain assets based on the way the market winds seem to be blowing. Your assets will be best protected in an economic crisis if you remember these golden rules.
Jayla Barnsen is a freelance blogger from Eugene, Oregon. She writes on a variety of topics, including technology, saving money and the great outdoors. She is also a health fanatic and loves to find new great recipes to try.