Published: 2020.12.14. Market crash risk - buying gold and bitcoin?
For many months in a row, euphoria has reigned in the stock market, fueled by an unlimited influx of cash inflows from the state, as well as the hope of an early end to the coronavirus crisis thanks to mass vaccinations around the world. The yellow precious metal is now trading below its all-time highs, which were reached in August 2020. In an interview with the Austrian TV channel, Rudolf Brenner warned investors against the danger of overheating on the stock exchanges. He named several important factors to look out for. This is especially the case for the US stock market, which has seen insider selling of stocks for a decade before a big crash. Now the market is ruled by borrowed speculative capital. One gets the impression that no one even thinks about a possible collapse. Everyone is confident in continued growth. In the short term, it will be so, as the next package of financial assistance is expected to be adopted to save the American economy. However, now, more than ever, the probability of a crash in the stock market is high. What should investors do in the current situation? First of all, you need to diversify your investments. According to the expert, in addition to gold, investors should pay attention to the bitcoin cryptocurrency, which is a decentralized means of payment. Although it has yet to establish itself as a reliable means for long-term storage of capital. Unlike Bitcoin, physical gold has a thousand-year history and has always shown its best side during crises. It makes sense to keep in your investment portfolio from 10% to 20% in gold. In the current situation, this would be a reasonable decision.