You may have heard some economists talking about how we are continuing to grow (although at a slow pace) and even a few are saying that the U.S. is getting ready for an economic boom. However, the corporate earnings growth of companies in the Dow Jones Industrial Average is falling. The Dow Jones Industrial Average rose 11.4% on the news of QE3 and hopes that corporate earnings growth would hold. A lot of companies are failing to meet their corporate earnings targets though. If earnings continue to pull back, there is no real reason for key stock indices to increase. Europe seems poised to also head into another recession, and the U.S. will feel its effects. Then there is the issue of the looming Fiscal Cliff. If no deal is reached, economists say the cuts in spending and increase in taxes WILL push us back into another recession. If a deal is made, it will just be kicking the can down the road to be dealt with later.
So what should you be thinking about as an investor? What is something that will gain should there be another downfall in the economy? Gold is one of the best investments you can have during a recession. Not only is gold valuable, but other precious metals will help protect your investments as well.
For more information, visit WhyGold.co.