Hedge your retirement portfolio with a gold bullion IRA
November 10, 2010 - It is more important today than ever before to hedge your retirement portfolio with a gold bullion IRA. Even though the stock market appears to be on the rebound and the dollar seems to be rising, this is no time for complacency.
If nothing else part two of a double dip recession is a persistent sword of Damocles. Add to that widespread concern over the steady decline in the dollar resulting from the current round of stimulus and growing fears of a global currency war and it is plain to see why investors are swarming to the commodity markets to fortify their portfolios with gold bullion. But there is an even graver concern about long term investments, those which will determine the quality of your life in retirement.
Using Shiller’s cyclically adjusted PE (CAPE) model Brett Arends of the Wall Street Journal has calculated the prospects for long term growth of traditional investments - and they are bleak. According to his figures, a conservative portfolio consisting of 60% stocks and 40% bonds can expect a weighted yield of only 4.1%. Compare that to this year’s gain in gold bullion prices of over 20% and you will get the picture.
The CAPE model has proven extremely effective in assessing the potential for growth because by nature a free market will cycle around the fair market value. Today’s CAPE of 22 is very near the cycle’s peak and must inevitably begin dropping back towards the average of 16.
Experts agree that the bull market in gold bullion is far from over. With gold pushing to record highs almost daily, there is simply no better way to protect your retirement dreams than with a gold bullion IRA and no better time to do so than now.
