Editor's Note: We thought it might be timely to reprint this May 2018 article from GoldSilver Senior Precious Metals Analyst Jeff Clark. In times of extreme market downside and volatility, the mainstream financial media will rush to attempt to convince you they have all the answers.
And many of them, heavily incentivized to promote the interests of mutual funds and other stock-buying entities, will draw some especially curious conclusions. Join Jeff as he explores an especially bizarre piece from Money Magazine that advises you to protect yourself from a crashing stock market... by loading up on stocks.
I was flying back from giving a presentation in Vancouver last week and browsed through the financial publications at an airport newsstand, scanning to see what passes as mainstream advice these days. I spotted Money Magazine’s May issue and saw an article titled “5 Ways to Invest if You’re Worried About a Crash.” My curiosity was piqued—surely they’ll mention gold… right?
I wasn’t holding my breath. This publication has been a wonderful contrary indicator for gold—an issue in December 2015 actually claimed Lego sets were a better investment than gold, for example, and it marked, almost to the day, the very bottom of the gold bear market and the perfect time to buy. I’m convinced this magazine will also give us a clear sell signal (“Buy Gold Now!” or some such headline) AFTER the price has already skyrocketed. I guess I should thank them ahead of time.
Anyway, I turned to the article and read the subtitle “Worried about how shaky stocks have become lately? These five investments can act like shock absorbers in a diversified portfolio.”
Okay, surely this has got to include something about gold. I know from past issues that they don’t like...