Once again, we find ourselves in a place of economic uncertainty with no clear consensus about the future. On June 27, 2023, CNN reported that “Americans are feeling far more confident about the economy,” and on June 28, 2023, President Biden said that he “doesn’t think [a recession] is going to come,” citing slower inflation and a hot labor market.
But as Business Insider points out, “Several of the U.S.’s top banks disagree with Biden.” JPMorgan strategists say there’s only a 23% chance that our country avoids a recession, and Bank of America’s top economist also predicts a mild recession by the end of 2023.
On June 27, 2023, CNBC reported that an asset manager for British banking giant HSBC said that recession warnings are “flashing red” for multiple economies and that a U.S. recession is to come in 2023 with a European recession coming in 2024.
If you’re like me and follow financial headlines, you know that this sort of disagreement between various predictions is common. But it speaks to a prominent factor that can impact your portfolio regardless of where we’re headed: uncertainty.
As strategists, analysts, politicians, and news organizations argue over what’s to come for our economy, Americans are facing increased economic uncertainty.
Have you ever been so hesitant about a decision that you decided not to act at all? Even as someone who loves to do research and create strategies and action plans for my finances, I know that sometimes it can be tough to take the final steps toward, for example, selling off a certain stock that hasn’t done well but just might be on track for a rebound.
In many ways, I think the stock market tends to function the same way. As portfolio managers and consumers alike hear one source telling them good times are ahead and another warning of impending recession, it becomes easier to adopt a “wait-and-see” approach. But too many wait-and-see decisions can lead to economic slowdown or volatility, which might negatively impact portfolios with heavy allocations to the stock market.
This is why, when I see so many headlines providing conflicting information (or rather, headlines reporting on sources providing conflicting information), I don’t like to freeze up and take a wait-and-see approach. Instead, I see it as a sign of potential economic uncertainty, which in my opinion can be a sign of opportunities just waiting to be seized.
Physical gold has long been seen as a hedge against economic uncertainty.
I don’t tend to see most economic headlines as good or bad. Instead, I try to find the potential opportunity hidden behind each story about recessions, interest rates, or inflation. If I think we may be headed for a market downturn, for example, I might consider adding more historically recognized safe-haven assets like physical gold to my portfolio. The added benefit of such a decision is that gold often sees gains in times of economic growth as well and has been recognized as a hedge against market uncertainty when we’re not sure what may come next for our economy.
The protection and potential growth benefits of taking a position in physical gold, for me, always make it a viable option when I’m considering an adjustment to my portfolio strategy.
Physical gold is also a long-term asset, allowing you more peace of mind in times of market uncertainty.
There’s a reason so many Americans choose to include gold IRAs in their retirement portfolios: In addition to its hedging properties, physical gold also has a proven track record of long-term growth. This makes gold a great way to add what we like to call “wealth insurance” to your retirement strategy—a way of helping protect your hard-earned savings over the long term.
Sometimes, when we experience market uncertainty, I decide not to take action regarding my portfolio. But there’s a big difference between “wait and see” and “sit back and relax.” Rather than freezing up out of my own uncertainty, I get to enjoy the peace of mind that comes from knowing that I’ve already moved to help protect and grow my wealth with physical gold.