When planning for your retirement, there are quite a few important decisions that you’ll need to make. One of those decisions is which type of retirement investment will be best under the current market conditions. Considering a few main factors, many consumers have one big question, “Gold IRA or traditional IRA, which is better?” Today, we’ll look at three huge factors with regard to the stock market’s performance and the price of gold to try and figure out which option will be best with the current financial climate in mind.
Looking At 3 Main Factors
The three main factors that I like to look at when answering this question include market conditions, geopolitical conditions, and world economic conditions. When these conditions are good, the stock market is generally a good option. However, when they’re bad, gold is going to be the better option. So, what are we looking at these days?
Market Conditions – On the outer shell, the stock market seems like it’s doing great. For the last several years, we’ve watched the bulls take the market by the horns; driving it up every step of the way. However, there’s a hidden concern in the performance of the market. The simple fact is that after years of impressive growth, the average stock is greatly overvalued. With historically high valuations in the stock market, we’ve got a clear sign that a market correction could be on its way soon.
Geopolitical Conditions – History tells us that in times of war, financial markets worldwide tend to suffer. While we’re not in the midst of a war right now, geopolitical conditions around the world are becoming a bit of a worry to me. The bottom line is that there are threats of war in multiple areas. First off, every day when I watch the news, I’m learning more and more about the threat of ISIS and other terrorist groups. Aside from terrorism, Russia has been sanctioned for their actions in Ukraine and oil production countries are upset with Saudi Arabia’s decision to reduce the price of oil and put pressure on others. Simply put, the geopolitical climate is a bit cloudy these days.
Economic Conditions – While economic conditions seem great in the United States, for the United States to continue to sustain growth, economic conditions around the world must support that growth. Currently, the Eurozone is a major concern for economists and investors alike. The multi-country currency zone has been dealt bad hand after bad hand and is teetering on the brink of a recession. If that was to happen, it would surely cause issues here in the states.
After looking at the three main factors above, it doesn’t look like sustainable growth is possible in the market at the current rate. The good news is that under all three of these conditions, gold tends to grow in value. So, by choosing gold over tradition, you’ve got the ability to avoid losses and actually profit from a negative financial climate.