Scott Minerd is the chief investment officer at Guggenheim Asset Management. He said that the current market offers "the greatest investing opportunity in a generation." However, he also warned that there are some investments that will continue to fall.
Scott Minerd, Guggenheim's Managing Director, discusses 'the Greatest Investing Opportunity of a Generation.
Scott Minerd (CIO of Guggenheim Partners) shared his views on Monday in a series tweets.
Minerd is also chairman of Guggenheim Investments. This global asset management and advisory division of Guggenheim Partners, Minerd is also a shareholder. Guggenheim Investments manages approximately $325 billion of assets across equity, fixed income and other strategies.
The Guggenheim CIO wrote the following:
The current market offers perhaps the best investment opportunity of all time: Bonds from good companies traded in the 80s.
He said, "Downside they pay off at par. Upside they hand over the keys."
Minerd warned that investors should consider bonds issued by otherwise good companies at lower rates, which have traded down, and urged them to do so.
Traditional private equity is the worst option for stocks, as they are susceptible to further declines.
Jeffrey Gundlach, a billionaire investor, is another famous one who has recently recommended bonds. He expects the S&P 500 will fall 20% by mid October and is bearish on the equity markets. He advised investors to invest in long-term U.S. bonds and recommended that they "Buy Long-Term Treasurys". Gundlach warned of the dangers of deflation.
Elon Musk, CEO of Tesla, and Cathie Wood CEO Ark Invest both warned against deflation in America's economy. However, Joe Biden, the U.S. president, remains optimistic about the economy and notes that inflation has not risen for several months.
JPMorgan recently advised investors to invest in value stocks, while Goldman Sachs recommended that they focus on commodities. Robert Kiyosaki, author of Rich Dad Poor Dad, has warned that Fed rate increases will cause the U.S. to crash. He advised people to invest "real money", naming gold, silver and bitcoin. He advised investors to invest in crypto before the worst crash in history.
What are your thoughts on Scott Minerd, Guggenheim CIO? Comment below.
Frequently Asked Questions
Can I have physical gold in my IRA
Gold is money, not just paper currency or coinage. People have been using gold for thousands of years to store their wealth and protect it from economic instability and inflation. Investors today use gold to diversify their portfolios because gold is more resilient to financial turmoil.
Many Americans are now more inclined to invest in precious metals like gold and silver than stocks or bonds. Although owning gold does not guarantee that you will make money investing in it, there are many reasons to consider adding gold into your retirement portfolio.
Another reason is the fact that gold historically has performed better than other assets in times of financial panic. Gold prices rose nearly 100 percent between August 2011 and early 2013, while the S&P 500 fell 21 percent over the same period. During these turbulent market times, gold was among few assets that outperformed the stocks.
Gold is one of the few assets that has virtually no counterparty risks. Your stock portfolio can fall, but you will still own your shares. You can still own your gold even if the company where you invested fails to pay its debt.
Finally, gold is liquid. This means that, unlike most other investments, you can sell your gold anytime without worrying about finding another buyer. Gold is liquid and therefore it makes sense to purchase small amounts. This allows for you to benefit from the short-term fluctuations of the gold market.
What Does Gold Do as an Investment Option?
The supply and demand for gold affect the price of gold. Interest rates also have an impact on the price of gold.
Gold prices are volatile due to their limited supply. You must also store physical gold somewhere to avoid the risk of it becoming stale.
Which precious metal is best to invest in?
Answering this question will depend on your willingness to take some risk and the return you seek. Although gold has been considered a safe investment, it is not always the most lucrative. You might not want to invest in gold if you're looking for quick returns. If you have the patience to wait, then you might consider investing in silver.
If you don't care about getting rich quickly, gold is probably the way to go. If you are looking for a long-term investment that will provide steady returns, silver may be a better choice.
Are You Ready to Invest in Gold?
It depends on how much you have saved and if gold was available at the time you started saving. If you're unsure about which option to choose then consider investing in both.
Gold is a safe investment and can also offer potential returns. Retirees will find it an attractive investment.
Most investments have fixed returns, but gold's volatility is what makes it unique. As a result, its value changes over time.
But this doesn't mean you shouldn't invest in gold. You should just factor the fluctuations into any overall portfolio.
Another benefit of gold is that it's a tangible asset. Gold is more convenient than bonds or stocks because it can be stored easily. It is also easily portable.
You can always access your gold as long as it is kept safe. Plus, there are no storage fees associated with holding physical gold.
Investing in gold can help protect against inflation. You can hedge against rising costs by investing in gold, which tends to rise alongside other commodities.
It's also a good idea to have a portion your savings invested in something which isn't losing value. Gold usually rises when stocks fall.
Another benefit to investing in gold? You can always sell it. Like stocks, you can sell your position anytime you need cash. You don't even need to wait for your retirement.
If you do decide to invest in gold, make sure to diversify your holdings. Do not put all your eggs in one basket.
Don't buy too many at once. Start with a few ounces. Continue adding more as necessary.
The goal is not to become rich quick. Instead, the goal is to accumulate enough wealth that you don't have to rely on Social Security.
Gold may not be the most attractive investment, but it could be a great complement to any retirement strategy.
Can the government take your gold?
You own your gold and therefore the government cannot seize it. You have earned it by working hard for it. It belongs to you. This rule may not apply to all cases. For example, if you were convicted of a crime involving fraud against the federal government, you can lose your gold. If you owe taxes, your precious metals could be taken away. However, even if taxes are not paid, gold is still your property.
Can I have a gold ETF in a Roth IRA
This option may not be available in a 401(k), but you should look into other options such as an Individual Retirement account (IRA).
Traditional IRAs allow for contributions from both employees and employers. An Employee Stock Ownership Plan (ESOP) is another way to invest in publicly traded companies.
An ESOP is a tax-saving tool because employees have a share of company stock as well as the profits that the business generates. The money invested in the ESOP is then taxed at lower rates than if it were held directly in the hands of the employee.
A Individual Retirement Annuity (IRA), is also available. With an IRA, you make regular payments to yourself throughout your lifetime and receive income during retirement. Contributions to IRAs will not be taxed
What are the fees associated with an IRA for gold?
$6 per month is the Individual Retirement Account Fee (IRA). This includes account maintenance fees and investment costs for your chosen investments.
If you want to diversify, you may be required to pay extra fees. The type of IRA you choose will determine the fees. Some companies offer free check accounts, but charge monthly fee for IRA accounts.
Many providers also charge annual management fees. These fees vary from 0% to 11%. The average rate is.25% each year. However, these rates are typically waived if you use a broker like TD Ameritrade.
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- 7 U.S. Code SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement accounts
The History of Gold as an Asset
Gold was a currency from ancient times until the early 20th century. It was universally accepted and loved for its beauty, durability, purity and divisibility. Due to its value, it was also internationally traded. Because there were no internationally recognized standards for measuring and weighing gold, the different weights of this metal could be used worldwide. For example, in England, one pound sterling was equal to 24 carats of silver; in France, one livre tournois was equal to 25 carats of gold; in Germany, one mark was equal to 28 carats of gold; etc.
The United States started issuing American coins in the 1860s made of 90% copper and 10% zinc. This caused a drop in foreign currency demand which resulted in an increase of their prices. The price of gold dropped because the United States began to mint large quantities of gold coins. The U.S. government was unable to pay its debts due to too much money being in circulation. To do so, they decided to sell some of the excess gold back to Europe.
Many European countries didn't trust the U.S. dollars and started to accept gold for payment. Many European countries started to accept paper money as a substitute for gold after World War I. The gold price has gone up significantly in the years since. Even though the price fluctuates, gold is still one of best investments.
By: Kevin Helms
Title: Guggenheim’s Scott Minerd Discusses ‘Greatest Investing Opportunity’ — Warns Stocks Vulnerable to Further Declines
Sourced From: news.bitcoin.com/guggenheims-scott-minerd-discusses-greatest-investing-opportunity-warns-stocks-vulnerable-to-further-declines/
Published Date: Wed, 21 Sep 2022 01:30:10 +0000
Did you miss our previous article…