Ever since February of this year, stock market volatility has been high, pushing us into correction territory as investors pulled more money from U.S. stocks than we’ve seen in 10 years. This also happens to be the longest correction mode stocks have experienced in a decade, prompting investors to move money into alternative investments like income producing property, which offers a safe, proven way to make money and protect your assets. Read on to learn more about ongoing stock market volatility and why real estate investing makes so much sense.
Market Correction Leads to Selloff
With U.S. stocks performing a sort of financial reenactment of the movie “Groundhog Day,” investors yanked more than $41 billion dollars out of the market in February, which marks the longest single-month outflow since January 2008, according to the Investment Company Institute.
“The S&P 500 is about 7 percent below its record high”, wrote CNBC. “Stocks have struggled to remain green for the year”.
This year, the S&P 500 and Dow Jones Industrial Average fell a whopping 10 percent into correction territory in early February for the first time in nearly two years, followed by a drop of 4.8 percent in March. In part, the selloff and the correction was spurred by fears surrounding rising interest rates, a U.S-China trade war and increased regulations on tech companies.
“Triple digit swings have become commonplace”, wrote Fox Business News. “The S&P 500, the broadest measure of large company stocks, has been hovering in correction mode [and is] yet to recoup the 10% drop from the high reached in January 2018.”
Despite strong 1st quarter earnings, stocks have had their worst start to the 2nd quarter since the Great Depression, stoking fears and leading to the recent $41 billion-dollar selloff. This has some analysts predicting that a correction of up to 30 percent will happen sometime in the next few years. In addition, the VIX Index, which is a key measure of future stock market volatility, has racked up its 23rd move of 10 percent through April, which is the most on record.
“It’s a new age of volatility”, stated Mark Newton, who serves as chief technical analyst at Newton Advisors, in a recent interview with Fox News. “The chances of the stock market busting out of this rut are getting slimmer”.
Finally, rising bond yields are causing even more uncertainty, coupled with higher borrowing costs and a lackluster monthly jobs report for April.
Where to Find Great Investment Income
As the investor euphoria of last year subsides and the current correction and selloff continues, alternative investments like real estate are gaining market share as investors look for ways to bolster retirement income and get better return on investment than stocks, bonds and mutual funds can provide.
Sadly, real estate investing is often (incorrectly) thought to deliver a lower return on investment than stocks and other similar investment vehicles. But what your investment advisor probably won’t mention is that, when inflation is factored into the equation, real estate investing outperforms stocks, bonds and mutual funds over time, every time.
The key is to find an income producing property in a fantastic location, such as turnkey vacation home rentals in a top tourism destination like Mexico’s Riviera Maya. Just don’t be afraid to look outside the box to learn how smart investors are making money in Mexico right now… To the tune of 8-14 percent return on investment – and you can too!
Are you looking for ways to protect your portfolio and get great return on investment? Let us know in the comments!
Read 7 Reasons Real Estate Investing is Better Than Stocks to learn how income producing property is proven to be one of the safest and best alternative investments available today.