The stock market’s upward climb can’t continue forever, and many investors are going to get hurt when its run eventually comes to an end.
That’s according to Nick Barisheff, CEO of BMG Group. Speaking to the Investing News Network, he said investors would do well to take a step back before it’s too late.
“The market is due for a major correction. What will cause it and when it will happen is anybody’s guess — it could be tomorrow, it could be six months from now,” he said.
Typically investors are slow to get out of the market once a crash begins, Barisheff explained. They lose 10 to 20 percent one day, but hold on with the hope of a recovery. When that turnaround fails to emerge, their losses continue to mount. The solution, said Barisheff is to get out before the carnage.
“When markets get precarious like this, when you’re at the edge of a cliff, you step back,” he said. “Take your money off the table. Because even if you’re making 10 percent a month (in the stock market), is it worth the 10 percent in risking a 50 to 70 percent loss?”
Exiting the market might typically mean going into cash, but Barisheff pointed out that in today’s world investors need to go a step further due to currency devaluation.
“Instead of taking your money off the table and going into cash … you go to gold (because cash is devaluing daily). Gold will at least hold its own and probably appreciate … so by sitting it out in gold you can wait until the market finishes correcting and then buy back in,” he said,
“There’ll be some spectacular deals then. That’s when you want to buy.”
Watch the interview above for more from Barisheff on gold and the stock market.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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