While several countries around the world are going through an economic slowdown or a complete economic collapse, the United States economy seems to be doing rather well. Unemployment is low, business and consumer confidence levels are high, and all the stock indices are hitting all-time highs. Most Americans have digital wealth and believe that their assets are safe in our financial systems. Ted Bauman is an editor at Banyan Hill Publishing who specializes in low-risk investment strategies and asset protection. With stock markets soaring, the last thing on the minds of many participants in the market is asset protection because they believe the good times in the market are here to stay. However, it is prudent to store a small portion of assets outside the reach of the government and financial institutions. Also, with high valuations for stocks, it may be time for investors to consider a low-risk approach to investing.
Ted Bauman had written in one of his blogs about a relative who stored a massive amount of assets at their home. He mentioned how his relative’s assets were kept in a study, but not protected well. His relative could have lost all their wealth in a burglary or a natural disaster. Ted Bauman advises individuals to purchase a water and fireproof lock box to store some valuables at home. He recommends storing some precious metals, cash, expensive jewelry, and other valuables. He is not advocating for people to store all their wealth at home, as that would be foolish in most scenarios.
For the assets that are to stay in the financial institutions, Ted Bauman advocates a proper balance of stocks and bonds. Many investors shy away from bonds due to a lack of understanding. Bonds can protect a financial portfolio if there is a stock market crash. Bonds pay interest to an investor and can be a reliable stream of income, very similar to dividend investing. Ted Bauman advises not to completely sell out of one’s stock positions if they believe a crash is imminent. He points to the famous 1987 crash where investors who panicked and sold everything lost money. Investors who held came out ahead at the end of the year. Ted Bauman Says Amazon Isn’t a Monopoly, Warns Shareholders of Vulnerability