Billionaire investor Seth Klarman is advising investors to have some of their portfolios in gold. He said, “I’m a fan of gold. I think gold’s valuable in a crisis. If the world turns to hell, the war expands and gets worse, God forbid a nuclear weapon is used, I think people are going to say: ‘How do I know what anything’s worth anymore? I’m going to make sure I have some gold because I don’t want to not have money at a time of desperation.’ It may never come to that, but I think it’s prudent to have a little bit of your portfolio in gold.” Keith Neumeyer, CEO of First Majestic Silver, said good things are coming for gold. “Once we see the Fed back up its current policy, it’s going to raise rates by probably two or three more times this year…once the market really does crack is when I’m expecting it to happen, then I think you’ll see the Fed turn around and start reducing rates. That’s going to be the beginning of the next big cycle in gold and silver.”
Business Insider/Theron Mohamed
Billionaire investor Seth Klarman touts gold, blasts crypto, and questions the Fed’s resolve in a new interview. Here are the 7 best quotes.
Seth Klarman trumpeted gold as a haven asset, dismissed cryptocurrencies as dangerous and pointless, and predicted the Federal Reserve would back down from its inflation fight during a rare interview with Harvard Business School, which was filmed in March and released this week.
The billionaire investor and Baupost Group chief — widely seen as Warren Buffett’s spiritual successor — also championed the US dollar, and warned rising interest rates could spell trouble for funds that have taken too many risks in recent years.
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Fed will pivot policy, lower rates by Q1 2023, spark new bull run for gold, silver
The Federal Reserve’s hawkish stance is not sustainable, and it is likely that not only will the world’s largest central bank stop raising rates altogether by the end of the year, they will reverse course and lower rates, according to Keith Neumeyer, CEO of First Majestic Silver.
Speaking to Michelle Makori, Editor-in-Chief and Lead Anchor of Kitco News at the Prospectors & Developers Association of Canada conference in Toronto, Neumeyer said that the Fed’s monetary policy pivot will likely occur by Q4 of 2022 and spur another bull rally in the precious metals.
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Fox Business/Breck Dumas and Jon Michael Rassch
Retirement accounts lose trillions in stock rut
When investors get their quarterly 401(k) statements in the next few weeks they’ll be hit with some bad news.
The S&P 500, the broadest measure of U.S. stocks, is down 21%, the Nasdaq nearly 30% and the Dow 16% so far this year, and Americans are seeing the value of their retirement accounts dwindle along with the drops.
Alicia Munnell, director of the Center for Retirement Research at Boston College, wrote in a blog post this week that retirement plans have collectively lost upwards of $3 trillion since the beginning of January.
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