As an investor, it is highly important to know what is best for your return in the end. If you are just getting started with your investment portfolio, you might think it is best to look at one element of investing and stick with it. At Landmark Capital, we see it differently. We believe that the best route to take in any investment portfolio is to diversify. Let’s take a look at the benefits of investing in many venues versus just one.
The Stock Market or Gold?
Investing in Stocks Alone
The blessing and curse of the stock market is its volatility. Any given stock could see a formidable increase or a drastic decrease in points. The saying of the stock market is buy low, sell high. Knowing when is high enough to sell is the hard part. If you wait too long your stock could suddenly jump off the deep end and leave you in a sticky situation. On the other hand, if you get the timing right you could end up with a whole lot of money. Its never as easy as it may sound.
If you look at the S&P 500 over the course of the last three months you will see the volatility of the stock market. On November 3rd, 2015 it sat at a comfortable 2116.48. Three months later on January 8th it hit a low of 1922.03. Now, this is not by any means a bad score considering that in 2009 the S&P 500 hit 735.09 but it does show that the market could drop at any time.
Investing in Gold Alone
Unlike the stock market, gold is very consistent. It has stayed at a fairly high rate per ounce for a very long time. Some people see gold as a hedge against inflation because of its consistency. The downfall of investing in gold alone is that it’s not going to make you a whole lot of money. Gold does not earn investment interest. Also, since gold is a physical asset, it can be lost like the vaults of the World Trade Centers.
Investing in Stocks & Gold
Now that you understand that stocks by themselves could be dangerous to your investment portfolio and that gold can protect you from volatility, it’s time to look at what happens to your money if you diversify your portfolio. When you place your money in different assets you are heading in the right direction to retire well. Let’s look at an example. Here at Landmark Capital we believe in the 25/25/25/25 investment plan. This means splitting your investments into four areas. Those areas are real estate, cash, stocks, bonds and mutual funds, and precious metals like gold. In our professional opinion this plan will keep you set and safe for life.
Get Your Financial Blueprint
If you were looking for a straight answer to whether or not you should invest in stocks or gold, the answer is simple, both. To get more information on how to get your financial blueprint from Landmark Capital, contact us at 877-448-2646.