By Carl Weber III
The midterm elections are over and I believe we are in for one of the rockiest 'lame duck' periods of American politics ever. Nevertheless, it seems the Republican victory is good news for the stock market. The reactions have been very bullish. At ASI, we know many of you have been riding the equity wave for some time to your benefit.
That said, I think you'll agree all is not rosy. While watching our equities rise, we have that 'pit-of-the-stomach' feeling it could all blow up at any time. In this 'Q & A,' we answer questions articulated by our clients, which are surely also on your mind.
How do I ride the market and protect myself all at once?
I won't keep you in suspense. It's a three-step process.
First, ensure you have trailing stops in place to protect you on the downside.
Second, rebalance by taking equity profits and buying precious metals at below value prices.
Third, add uncorrelated assets, like rare stamps and rare coins, for both extra growth and protection. ASI can help. Don't wait until it's too late. Protect your bottom line now.
This may sound self-serving, but it's a proven winning strategy.
There is a time-honored strategy to which ASI has adhered to for over 32 years... rebalancing, an adjunct to Modern Portfolio Theory. Rebalancing postulates the allocation of asset classes in your portfolio is more important to growth and protection than the individual picks. By rebalancing (putting the percentage back in proportion), you have a logical and proven strategy to buy low and sell high.
Right now, you have some strong candidates to consider with all precious metals selling below current costs of production. At the moment, silver is a great example. At $15-$16 per ounce, it is well below the price of getting it out of the ground. This can't last. Silver is a perfect rebalancing candidate; as are all precious metals at current prices.
The heart of the ASI philosophy is to hold a core allocation of at least 10% in precious metals; primarily gold and silver.
We have been suggesting this for over 32 years. In 1989, the optimal allocation was 'officially' pronounced when Professor Jaffe of the Wharton School, did a study, which has been confirmed by many after him. Jaffe calculated different portfolio ratios between gold and equities until the 'efficient frontier,' the best risk/reward ratio, was found. Later calculations used physical gold (Jaffe used gold stock), to arrive at similar results. 85% in the S&P 500 with 10% in gold offered the same volatility with a higher return as did a portfolio consisting of all securities.
Yet, no matter how experienced an investor you are, the discipline of selling high and buying low is difficult.
ASI makes it easy on you.
We have strategies to protect your buying power. All you need to do is call an ASI Preferred Client Relations representative to correct your allocation and protect yourself.
We are adept in guiding you through your allocation issues without exerting pressure. We are all non-commissioned professionals, rewarded only by our service to you.
How would you like to own totally UNCORRELATED assets for lasting protection and historical growth?
If you already have your 10% precious metals allocation, take the next step. We are the leaders in providing you with rare tangible assets to fulfill the uncorrelated portion of your allocation.
A new asset class, like rare tangibles, is a new road to safety and growth.
Rare stamps and rare U.S. gold coins have emerged from the sector of collectibles to investment grade assets. Because of grading standards and reliable indices of the returns from rarities, brilliant investors like Bill Gross and Malcolm Forbes have added these to their holdings.
ASI has 'democratized' rare tangible assets (only previously available to the super wealthy and royalty) so the average investor can own them too. You can learn more here.
I regret that I was unable to attend your 'From Precious Metals to Rare Tangible Assets' Conference in Washington, D.C. in November. How may I access the information I missed?
No problem. We recorded each speaker so you will have access to their complete presentations. We also separately recorded other experts, savvy attendees and our speakers to gather investment hints and tips not on the official presentation schedule. To register your interest in a copy of the conference, please call us at 877-340-0790.
Here's a preview of what you will learn:
The common thread running through each presentation showed how well uncorrelated assets such as truly rare stamps, rare gold coins, rare European and ancient coins, and books and prints put balance in a portfolio, beyond mere asset allocation.
Uncorrelated assets give you protection regardless of how your other assets respond to market conditions. Our speakers were intent in educating precious metals investors on the protection from the devaluation of fiat currency afforded by rare tangible assets.
Where in the world is ASI?
Home through the holidays... so it's a great time to catch us in the office for end of year planning!
Call us at 877-340-0790 or email us to discuss rebalancing your portfolio to take advantage of the lowest precious metals prices in nearly half a decade. This is a great time to accumulate wealth insurance at bargain prices. We stand ready to help you Keep What's Yours!