Defensive Investments in a Bear Market

There was “good news” on the economy, even as the federal reserve announced the next rate hike. Wednesday, July 27, Federal Reserve Chairman Jerome Powell said “I do not think the U.S. is currently in a recession and the reason is there are too many areas of the economy that are performing too well.” So, do wise investors “simply” identify the areas of the economy that will continue to perform “too well” and make a series of defensive investments? If it truly were that “simple” everyone would do it , right?

Yet, many expert financial advisors claim wealth never disappears; it shifts. So how can you hold onto your own wealth, and even improve your position, in today’s bear market? That’s why it’s time to consider that defensive investments approach. By this we don’t mean pulling out cash or liquidating assets, rather investing your cash in safer harbors.

A Defensive Investments Approach

Utilities are a Bear Market Favorite

One defensive investments move is to reduce stock exposure. By also shifting equities to consumer staples and utilities individuals can add protective layers. People need energy to function today. They may decide to stay in the smaller home, to skip vacations, to wait on building the addition, but they will pay their electric bills.

Stick to Stocks of Life Essentials

If the price of everything is going up, what will people still pay?  Food, basic clothing, utilities, some types of housing are all essential items. As an investor, putting money into the things people will strive to pay even as the “transitory” inflation continues, can result in more durable investments while reducing risk and potentially increasing return.

Got Gold?

Traditionally gold does well in this type of environment. admittedly there have been fluctuations in the metals market, but historically it continues to be a safe haven during downturns. We’re referring to an ETF backed by physical metal. Think physical gold.

Other Physical Assets To Invest In

By owning physical Assets, like gold, oil, land, or commodity producers, investors can position themselves more steadfastly. Talk to your Americore rep before you move anything. You’ll want to carefully consider your choices to avoid anything built on debt.

I Bonds are Another Defensive Investments Choice

Backed by the federal government, I bonds are safe investments issued by the U.S. Treasury to protect your money from losing value during inflationary periods. Interest rates on I bonds are regularly adjusted to pay not only a fixed rate return but also an inflation-adjusted variable rate return.  

Leverage Blue Apple Programs To Enhance Cash Flow

Americore Blue Apple financial solutions, such as the health care benefit program saves employers money, AND returns more through rebates. Other programs help offset employee retention struggles. In fact, Americore facilitates discovery of a host of programs which are feasible financial opportunities. Surprisingly, many of these financial gems are often unknown in the financial world. We work with teams every day to match up Blue Apple programs to their client’s needs.

Our Blue Apple solutions are proven to free up funds, improve cash flow, improve employee retention, or boost retirement planning. It’s time to have a conversation. It won’t cost you anything, but you’ll be glad we did. Call our office at 747-224-8110 or contact us here. Tell your Americore representative what your goals are, and we’ll advise you how we can help you achieve them.