Gold has “a long way to run” in the face of global de-dollarization, says Co-CIO of Bridgewater Associates Karen Karniol-Tambour. As countries look to non-dollar currencies for trade deals, central bank purchases of gold have soared in recent quarters. “This geopolitical turmoil is not going away. This is a slow-moving secular support for gold,” Karniol-Tambour added. According to the latest Gallup poll, more than a quarter of Americans view gold as the best long-term investment, with the precious metal significantly catching up to real estate’s falling 34% approval rate. “Gold tends to be the beneficiary when confidence levels in both real estate and stocks are down. This is typically during times of economic recession or uncertainty, as happened around the time of the Great Recession, and is happening again today,” Gallup said. Until the economic cycle shows signs of turning, CEO of Hedgeye Risk Management Keith McCullough is steering investors to secure assets, including precious metals.
Markets Insider/Filip De Mott
De-dollarization means gold is underrated and has a ‘long way to run,’ says Bridgewater’s Co-CIO
Gold could be at the start of a lasting growth period as global de-dollarization trends continue, Co-CIO of Bridgewater Associates Karen Karniol-Tambour said.
Gold has historically been attractive when interest rates are falling, but she thinks there’s now more to the precious metal, setting it up for a bullish outlook.
“Gold is underrated. It’s got a long way to run,” she said Tuesday at the Sohn Conference, according to Kitco News.
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Kitco News/Anna Golubova
Americans’ approval of gold as best long-term investment doubles from last year, says Gallup survey
Gold is catching up to real estate as the best long-term investment, with American investors’ perceptions shifting due to higher interest rates and increased stock market uncertainty.
The number one preferred long-term investment asset remained real estate, but it dropped significantly from last year’s record-high approval of 45% down to 34% in 2023, according to the latest Gallup poll. “Higher interest rates over the past year have cooled the housing market, dampening consumer exuberance about real estate as an investment,” the survey said.
The view that gold is the best long-term investment jumped from 15% in 2022 to 26% — the highest levels since 2012. Gold has overtaken stocks as the second-most preferred investment and has come close to the number one spot, with more than a quarter of Americans viewing gold as the best long play.
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‘The Fed is way late and they’ve already screwed it up.’ This stock strategist is banking on gold, silver and Treasurys to weather a recession.
The Federal Reserve keeps telling the financial markets to take its tough talk seriously. Yet many investors and even Wall Street professionals are pricing stocks as if a return to the good old days of easy money and low interest rates is just around the corner. They’re convinced that the U.S. central bank is about to end its rate hikes and then pivot — lowering rates and bringing the U.S. economy to a soft landing that ushers in a new bull market for stocks.
Keith McCullough isn’t having it. The CEO of investment service Hedgeye Risk Management expects the Fed’s restrictive actions will squeeze the U.S. economy too tightly. McCullough is keeping client portfolios geared to his view that in its zeal to curb inflation, the Fed ends up driving the economy into a recession — crushing consumer demand and the ability and flexibility of businesses to borrow, finance debt, cover expenses and meet payroll.
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