The general election debates between President Barack Obama and former Massachusetts Governor Mitt Romney, some hoped, would provide a spotlight on the two candidates' respective plans for dealing with the "fiscal cliff." For the uninformed, this upcoming financial event could amount to a $600 to $700 billion hit to the U.S. economy in a mixture of spending cuts, tax increases and the expiration of federal unemployment insurance programs.
We covered this upcoming economic calamity in previous articles, discussing some of the impacts the fiscal cliff, or sequestration, would have on the economy.
Today, we'll look at how investors can adjust their portfolios to handle the potential financial disaster that sequestration could cause.
As entrepreneurs know well, diversification is an important facet of any investment strategy. In preparation of the fiscal cliff, investors may want to review their portfolios to determine if they have too much of one stock or bond class that could be at risk of a major sell-off at the end of 2012. Firms in the finance and construction sectors may take a huge hit as a result of the fiscal cliff, as could companies that receive the majority of their business from the government.
There are some in the investment industry who say that hard assets, such as gold, silver or oil, are worthy investments. While economic history suggests that there is some truth to these claims, it's important not to keep your eggs in one basket, as the saying goes.
One strategy, however, stands out among the others as a trustworthy method of wealth preservation: rental home investment. Entrepreneurs who put their money into cash flow real estate can avoid stock and bond market turbulence by owning an asset that people will always need.
GreatWealthStrategies.com has a wide selection of programs that can help people invest in real estate. Contact one of our customer representatives today to learn more about our services and receive a "Free Game Plan Report."