BURBANK, Calif., Oct. 2, 2019 /PRNewswire-PRWeb/ -- Phillip Patrick, Precious Metals Specialist at Birch Gold Group, joined the Ben Shapiro Show on Friday to caution listeners of the 'calm before the storm' scenario that is currently playing out in the markets. While the sinking Treasury yield curve has long been a point of concern, Mr. Patrick explained why its recent full inversion is a reliable signal that a recession is almost certainly in the not-too-distant future.
As Patrick described the inverted yield curve, it's "one of the most accurate indicators of recession… For the last 50 years, [it] has inverted prior to every major recession, with no exceptions. It typically gives us a time frame of, on average, of about 12 to 18 months until we see recession."
Mr. Patrick added that the cyclical nature of the stock market dictates a correction every decade or less, yet U.S. stocks have now experienced 11 years of interrupted growth. Signs pointing to the end of the longest bull run in the stock market's history include record insider selling, as Mr. Patrick shared some statistics regarding the flow of institutional money.
"Institutional investors tend to have an uncanny ability to preempt a crash… August was the fifth month this year that we've seen over $10 billion of institutional money flowing out of the markets. The only other time we've seen this level was back in '06 and '07, the period before the last bear market in stocks and ultimately the '08 crash," said Patrick.
With investors across the board becoming increasingly concerned about a major market crash, Shapiro inquired about the optimal way for the average person to prepare, whether domestic or global. Mr. Patrick urged individual investors to adopt the same proactive approach as the institutional investors; in other words, instead of trying to time the market, seize the opportunity by diversifying their savings with precious metals sooner, rather than later.
"As the old saying goes, it's better to be six months too early than just a second too late," said Patrick. While both Shapiro and Patrick emphasized the importance of using precious metals as a hedge in a balanced portfolio, the host noted that gold and silver, unlike many other assets, do not really have a point at which buying even more becomes risky.
Birch Gold Group and Ben Shapiro have enjoyed a long-standing partnership, extending to over the past three years. To date, the precious metals company has helped hundreds of listeners of the Ben Shapiro Show diversify their retirement savings, such as an IRA or 401(k), into a Precious Metals IRA.
Shapiro singled out the company's accessibility and transparency, affirming Birch Gold's devotion to customers. "People like Phillip will be there to answer those questions. Get educated, make sure that you feel comfortable, and then when you are comfortable, then maybe you should think about taking at least some of your money and putting it into precious metals as a method of diversification," said the host.
To watch the full interview, visit the Birch Gold website at https://www.birchgold.com/ben-shapiro-gold-company
ABOUT BIRCH GOLD GROUP
Birch Gold Group helps Americans diversify their savings and retirement accounts with physical precious metals. Serving the entire United States, the company maintains an A+ Rating with the Better Business Bureau and a AAA Rating with the Business Consumer Alliance. It has served thousands of satisfied customers and has earned countless 5-star reviews.
SOURCE Birch Gold Group