Although Friday afternoon saw the Dow clinging to its meager morning rally, it’s hard to overlook this week’s two-day selloff, which bolstered the validity of recent warnings from top analysts predicting looming stock market volatility. The blue-chip index lost nearly 1,400 points, while the S&P 500 was down nearly 7 percent and the tech-heavy Nasdaq also officially dipped into correction territory after experiencing a real battering mid-week, falling more than 10 percent from its most recent 52-week trading high.
Read on to learn more about ongoing stock market volatility and see how smart real estate investment can protect your hard earned assets and provide secure, proven, reliable investment income.
“This market downtown will likely be more severe than the 10.2 percent drop the market suffered in February”, stated Jim Paulsen, who serves as chief investment strategist at The Leuthold Group in Minneapolis.
While the Dow has still managed to hold onto a small 1.3 percent gain for the year, it’s trading at its lowest level since late July, causing the debate about whether the market has flipped from bullish to bearish to center around a few key issues affecting the economy:
- Rising Interest Rates
- Trade Frictions with China
- Recent Thrashing of Top Tech Stocks
- High Investor Expectations
How to Diversify with Real Estate Investing
Since the art of predicting what the stock market will do next is an inexact science (at best), we believe your financial portfolio should always remain well diversified, regardless of how global markets are performing. Investing in real estate provides protection from stock market volatility with a secure, tangible brick-and-mortar investment, as well as a hedge against inflation and much-needed portfolio diversification, but investment properties can also provide reliable, proven tax-deferred income when you invest using funds in your IRA account.
Here are a few of our top tips for real estate investing:
- Find an excellent location that’s always in high demand.
- Work with a trusted local real estate investment advisor.
- Consider investing in a top international destination.
- Experienced property managers can dramatically improve ROI.
- Buy with Your IRA to Maximize Return on Investment.
Do you have questions about real estate investing? Post them in the comments!
Read Why It’s Hard to Make Long-Term Gains in the Stock Market to learn more about how to diversify your portfolio with smart real estate investment.