Although your financial portfolio has likely done well lately, recent events have top analysts predicting major stock market volatility is headed our way, to the tune of 30-45 percent drops – or more – coupled with lackluster yields of just 4 percent, increased borrowing and higher interest rates.
“[Scott Minerd] Guggenheim’s head of investing sees a tough road ahead for the market and economy, with a sharp recession and a 40 percent decline in stocks looming”, wrote CNBC. “Along with the decline in equities, a rise in corporate bond defaults is likely as the Federal Reserve raises interest rates and companies struggle to pay off record debt levels”.
Investors Should Prepare for Low Yields and Greater Stock Market Volatility
Minerd thinks the next year will be relatively stable, albeit peppered with some major peaks and valleys, but when the recession starts – and there’s little doubt among economists that it will start – our current “collision course with disaster” will culminate in another hard sell off. This one will begin in late 2019 and is expected to continue through 2020, bringing about abysmal return on investment and major losses for investors who don't act now to protect their assets.
It's also important to note that Guggenheim isn’t the only major financial house to foretell of looming disaster. In addition to longtime Franklin Templeton guru Mark Mobius calling for at least a 30 percent drop recently, JP Morgan CEO Jamie Dimon has joined the growing chorus of top investors and analysts who are predicting a major drop in traditional investments like stocks, bonds and mutual funds.
“Dimon warned that extra borrowing, combined with reductions in bond purchases, may cause more volatility, higher rates, in a way we don’t fully understand”, wrote Business Insider. “Dimon thinks U.S. growth and inflation could push the Fed to raise interest rates above current forecasted levels”.
What This Means for Average Investors
Overall, this is not a very rosy financial picture for investors who need stable returns and/or investment income… Which is why we think It’s time to take your profits and move to a safer, more secure and predictable investment, like high yielding vacation home rentals, which provide fantastic annual investment income and protection from ongoing market volatility. In fact, Mexico real estate investment is one of the best alternative investments on the market today, offering stable, secure returns and proven ongoing rental income in one of the world’s strongest real estate markets.
Benefits of Owning Vacation Rentals in Mexico’s Riviera Maya:
- Huge Market for Vacation Home Rentals (8-14% ROI)
- Low Expenses (Taxes, Maintenance, Management, etc.)
- Excellent Rent-to-Value Ratio
- Highest Property Appreciation for a Beach Destination
- Proven Ongoing Vacation Rental Income
- Owners Enjoy Free Vacations
- Secure Hedge Against Inflation
- Approved for Purchase with Your IRA Account
Are you interested in alternative investments like Mexico real estate? Let us know in the comments!
Read Stop Letting Market Volatility Deplete Your Investment Income and learn how to spot alternative investments like high-yielding vacation home rentals to protect your hard-heard assets.