Last year around the Fourth of July, I discussed the idea of financial freedom and what that means to me (being able to live comfortably while being free to choose where I put my money). This year, with inflation continuing to put pressure on our wallets and headlines discussing the possibility of a recession, I got to wondering: How might a recession impact one’s journey toward achieving or retaining financial freedom?
Analysts continue to predict a recession in the near future—and a recession affects us all.
On July 5, 2022, Bloomberg published an article titled “Inflation Is Here to Stay and That Makes a Recession Inevitable,” identifying the housing market as the “principal culprit” because of increasing mortgages rates, high home prices keeping away first-time homebuyers, and increasing rents. Forbes wrote that we’re “Close But Not Quite” in a recession as of early July 2022, while NBC News reported on July 5, 2022, about an inversion in the bond yield curve—a potential sign of a coming recession. Additionally, MarketWatch reported a drop in oil prices that same day, with James Williams, president of WTRG Economics, saying, “The market is finally pricing in recession risk.”
What does all this mean to the average American? According to a CNBC report from July 5, 2022, “74% of consumers are concerned about a recession.” And as a 2013 study published in the Annals of the American Academy of Political and Social Science points out, a recession can impact those across the economic spectrum, with “average housing prices in the largest metropolitan areas [falling] by nearly a third” and “the Dow Jones Index losing nearly half of its value” between 2007 and 2009 during the Great Recession.
But if you’ve read Gold News & Views before, you know that I’m not a big believer in sitting back and worrying about the future. Instead, I like to take action and enjoy the peace of mind that comes from knowing I’ve done what I can to prepare myself and my portfolio. That’s why I believe a recession doesn’t have to be a roadblock on the road to financial freedom.
Before a recession happens, you can take steps to help preserve your financial freedom.
After seeing these articles discussing current economic factors and indicators that may be signaling a coming recession, I began looking at suggestions for those concerned about how a recession may impact their portfolios. As you might imagine, the internet is full of such articles, with more coming out every day. As you might also imagine, many of these articles provide the same few suggestions, including:
• Create or add to a liquid emergency fund
• Reduce expenses as possible
• Work on your credit score
• Diversify your portfolio to help reduce overall risk exposure
• Think long-term
The emphasis on those last two points is mine because they’re points I frequently find myself discussing—and key parts of what we do at U.S. Money Reserve. In short, we help provide portfolio holders with the option to diversify with an asset class that has seen considerable growth over the long term and been a popular option for those looking to preserve their purchasing power: precious metals.
As part of an overall strategy, precious metals like gold may help you attain or retain your financial freedom.
There’s a quote from Michael Reagan, son of President Ronald Reagan, that I’m quite fond of. If you’re a U.S. Money Reserve client, chances are you’ve seen it before:
“My father believed you could not be free without being financially free. Gold makes you financially free.”
—Michael Reagan, son of President Ronald Reagan
Gold can be a powerful diversification tool for your portfolio. It is a physical, time-tested asset that has served for generations as a hedge against economic uncertainty. It has been a store of wealth over the long term, and along with its fellow precious metals, it can even be placed in an individual retirement account (IRA).
But what gold really offers—what financial freedom means to me—is choice. Choice creates opportunity, and with more choices come more opportunities to protect ourselves and those we love from whatever may come our way.
To learn more about the protective power of precious metals, CLICK HERE to request a FREE copy of our Gold Information Kit.