Daily Gains Letter (www.DailyGainsLetter.com), an e-letter published by Lombardi Publishing Corporation, a 28-year-old consumer publisher that has served over one million customers in 141 countries, is announcing its tops strategies for helping investors protect their wealth as key stock indices decline.
“While the U.S. economy may not exactly be on solid footing, that hasn’t stopped the S&P 500 from touching new highs almost every day. For stock market bulls, this points to continued growth,” says financial analyst Moe Zulfiqar. “While the S&P 500 started March in record territory, what’s important to note is that fewer and fewer stocks on the S&P 500 are reaching new highs.”
Over the last few months, the number of stocks reaching new highs has been on the decline, while the S&P 500 has been on the rise. Despite this economic disconnect, investors’ portfolios continue to post solid returns. Zulfiqar warns that investors need to keep in mind that every key stock index experiences a correction, whether minor or steep. As a result, long-term investors need to keep market correction and sell-offs in mind.
“Generally, when the key stock indices turn, investors turn towards government bonds. This is mainly because they move in the opposite direction of the stock market,” he adds. “Investors can protect their assets when key stock indices decline by going heavyweight on exchange-traded funds that invest in bonds with different maturities. Investors may even consider ETFs that invest in the inflation-protected bonds issued by the U.S. Treasury.”
Another way investors can protect their portfolio in the case of a stock market sell-off, Zulfiqar states, is with gold bullion; historically, gold has proven to be one of the best hedges against uncertainty and a protector of wealth. Investors can invest in gold bullion in two different ways: one way is through gold bullion ETFs, and another is through gold mining companies.
“Finally, investors can protect their wealth when key stock indices retrace by selling their positions. This may sound like an unorthodox way of investing, but when investors sell their positions, they are both cutting losses on their losing positions and taking any profits and raising cash,” Zulfiqar concludes. “When key stock indices finally settle, these investors may be able to get better deals and buy better-valued stocks compared to what they had before with the cash they raised.”
Founded in 1986, Lombardi Publishing Corporation, which has served over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more information on Lombardi Publishing Corporation and Daily Gains Letter, visit www.lombardipublishing.com.
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