Your investment advisor's next tip may be: "buy gold."
Inflation and long-term concerns about the underpinnings of the U.S. economy have some investment experts saying it's now a bullish market for gold and gold stocks.
Gold is up 6 percent since mid-December 2017. Fear of stock volatility and inflation worries have been good for gold stocks.
Maverick market mavens like Peter Schiff insist that Wall Street should wise up to warning signs – like interest rates that he says have been kept too low, for too long; deficit spending; and the savings rate among Americans. Those big-picture economic trends, Schiff and other say, are reasons people are heading for gold.
Gold still hasn't broken out yet, even with the gains. It has topped out at $1,375 per ounce in each of the past two years.
The metal has traditionally been considered a good hedge against inflation. Schiff is among those who insist that people should redirect some of their portfolio to gold stocks – and it should be noted that he sells them himself – as a counter to those inflation fears,
“Gold's relationship with inflation expectations has gotten interesting lately,” Schiff told Fox Business News.
Though the ceiling on gold has been limited to about $1,375 per ounce in recent years, Schiff says that only points to the yellow’s greater capacity for a big jump.