Buy gold and silver and sell stocks says top Wall Street guru Charles Nenner
Gold and silver bottoming out
The standout winners will be precious metals as the dollar declines and investors look to preserve their wealth. Look how Indians have won out against a falling rupee with gold that is now at a record price in rupees. It will be the same thing with the US dollar.
Mr. Nenner is a great follower of cycles in commodities and other indicators. He’s presently noting poor readings in the Baltic Dry Index as indicating a downturn in global trade and sickness in Dr. Copper, the king of industrial commodities.
Longer term the trend in global interest rates is now definitely back up so that is bad for bond investors. Pimco’s Bill Gross is not going to be alone in losing big time on bonds. So where does that leave smart investors?
According to Mr. Nenner they should be using a choppy market in precious metals over the next few months to take the contrarian view and stock up on gold and silver.