Monday, July 14, 2014
Don't Let the Global Economy Ruin Your Retirement Dreams
It might seem absurd that an investor in Florida (or anywhere else in the United States) could have his retirement plans sidetracked by activity that takes place on the other side of the world. But in today’s inter-connected global economy, that’s a very realistic concern. The US economy depends on manufacturing from China. Europe is highly dependent on the Middle East for oil. Stock prices in Tokyo are influence by the inflation of the US dollar.
In short, whether we like it or not, our economic fate is very closely tied to the rest of the world. Lately, as signs indicate that the global economy may be in serious trouble, investors have reason to be worried.
A Reuters article reports on some of these troubling indicators:
Another month of slower factory activity in China and a sharp decline in a closely watched gauge of U.S. manufacturing on Thursday added to concern about the state of the global economy.
Surveys also showed business activity across the 18-country euro zone slowed this month, confounding expectations of an acceleration.
U.S. stocks edged higher, however, as investors continued to shrug off tepid data while stocks in Europe recouped earlier losses, though sentiment remained fragile.
Investors were also concerned about minutes of the Federal Reserve’s most recent meeting, released on Wednesday, which showed the U.S. central bank was set to keep winding down its stimulus spending despite recent softer economic data.
“While we expect the recovery to continue during the course of this year, the market remains volatile in the near-term as investors are nervous on the back of the U.S. tapering story,” Henk Potts, equity strategist at Barclays Wealth, said, "Fears that the U.S. economy had lost some momentum in the new year after a strong finish to 2013 were reinforced by a decline in the Philadelphia Federal Reserve Bank’s business activity index to -6.3 from 9.4 in January." A reading above zero indicates expansion in the region’s manufacturing.
What happens if the global economy falls back into recession? Are your investments structured to protect you from the volatility that would follow? If not, the simple truth is that you have placed your financial future in the hands of men and women you’ve never met in countries you probably haven’t visited. If that makes you uncomfortable, do something about it!
Are you protected from the threat of global economic volatility? Would a global recession sink your retirement dreams?
Let us show you how trademarked Personal Protected Pension Plan™ reduces your vulnerability to market risk, as well as your exposure to taxes and inflation. We eliminate market risk; in the last decade, NONE of our clients have lost a single dime in the market. Prior gains can’t be lost, either. This is why our clients have averaged over 8% during the worst economic downturn since The Great Depression.
Don’t leave your retirement dreams in the hands of people on the other side of the world. Take action! To learn more, please visit www.HiddenWealthWebinar.com.
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