This Classic "Recession-Proof" Investment WON’T Work Now

By Wayne Mulligan, on Thursday, April 9, 2020

There was more bad news this morning:

Another 6.6 million people filed for unemployment. So, in just three weeks, more than 16 million U.S. workers have now lost their jobs.

As Kathy Bostjancic, chief U.S. financial economist at Oxford Economics, said, it’s as if the economy has fallen into a “black hole.”

When things get bleak like this, many investors try to save their financial future by pouring money into recession-proof assets.

Unfortunately, that strategy isn’t working this time around. Here’s why...

Real Assets, Real Returns?

During recessions, stocks and other intangible assets start feeling more risky…

You can’t touch such assets, so their perceived value becomes greatly diminished.

Instead, investors tend to move their money into “hard assets.”

Hard assets are things you can touch or hold.

And historically, one in particular has always done well during times like these...

The “Gold Standard” Recession Investment

I’m referring to gold.

As you can see in the chart below, during both the 2000 and 2008 recessions, even as the market crashed, gold soared:

Stocks and gold generally have a negative correlation — meaning, when one goes up, the other goes down.

But with the coronavirus crisis, things aren’t working out that way…

Do NOT Rely on This Investment 

As you can see in the chart below, the stock market and the price of gold are rising and falling at the same time right now:

What’s going on here?

Well, given the economic black hole we’re in, everyone seems to have the same idea:

Rather than having their money tied up in stocks, or even in gold, folks are keeping their money in cash

Many are bowing out of their investment and retirement plans. Instead, they’re focusing on making sure they have enough cash to pay for groceries and rent.

And that helps explain why most “traditional” recession investments won’t work this time around.

Don’t Make That Mistake…

Perhaps you’ve been tempted to stash your assets in cash, too.

But that would be a big mistake. It could set your retirement plans back by years, even decades.

We have a better plan — a plan with real solutions. And next week, we’ll start sharing these solutions.

These are investments that can perform well no matter what happens in the stock market. In fact, these investments have nothing to do with stocks.

They have nothing to do with startups, cryptos, or options, either.

In fact, I’d bet they’re unlike any traditional wealth-building investment you’ve ever seen before.

So if you’re eager to save your financial future, stay tuned…

Best Regards,



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Tags: Coronavirus Gold

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