It’s not too late to protect your portfolio.
U.S. inflation may be getting all the attention,
but don’t be fooled into thinking safety awaits overseas. In September, the International Monetary Fund forecast inflation in advanced economies worldwide will reach its highest since 2000. In the same month, inflation in the 12 nations that share the euro accelerated to the fastest pace in over a year. And in the U.K., inflation was the highest in at least eight years.
So, like Greenspan, Buffett and others, should you be worried about inflation? Based on the evidence,
definitely.
Is it too late for you to protect your portfolio from the ravages of inflation? Definitely not. Tangible assets,
particularly gold, are proven to be not only the safest haven against the effects of an eroding dollar, but also an outstanding wealth-building opportunity in an inflationary economy.
Blanchard and Company, Inc. clients are aggressively rebalancing their portfolios in favor of gold right now. Turn the page to see why concerned investors like you should follow their lead.
There’s still time to follow the smart money by diversifying into tangible assets.
“…Alan Greenspan and other central bankers seek to keep inflation under
control.”
—CNN/Money; 9/20/05
“Buffett…worries U.S. politicians will fix the deficit problem using inflation.”
— NewsMax.com
“…growing concerns that inflation fears could lead to higher interest rates kept investors selling.”
—Financial Times; 10/13/05
“Economists believe…
Katrina is likely to slow growth and boost inflation…”
—Wall Street Journal Online; 9/8/05
“ If you want to boost the
performance of your portfolio,
you’re going to have to think
outside the box of U.S. equities.
— MarketWatch; 10/15/05
Historically, tangible assets — particularly
gold — have been the investment of choice when inflation, deficits, loose monetary policy, soaring oil prices and
geopolitical turmoil are eroding the value of paper assets.
In fact, gold is practically the only investment that not only holds its value in times like these, but also increases in value, usually dramatically. That’s precisely what happened in the bull market of the 1970s, and today gold is poised to repeat that
performance — and may even exceed it.
Considering the unprecedented combination of factors driving the precious
metals market (see next page), Blanchard and Company, Inc. believes investors
could be looking at a once-in-a-lifetime buying opportunity
in gold right now.
“It’s portfolio insurance.”
— John Hill, Citigroup AP; 10/7/05
Research has proven that diversifying your
portfolio into different categories of assets (stocks, bonds, gold, real estate, cash, etc.) will reduce overall volatility. And gold, because of its negative
correlation to most other kinds of investments, is
the ultimate diversifier.
