Invest in Gold During These Volatile Times: Portfolio Manager
Stocks pared their losses on Wednesday after a weak open, but the market remained skittish after Moody's put Portugal's debt rating on review. Dan Denbow, co-portfolio manager of USAA Precious Metals & Minerals Fund, and Jim Meyer, chief investment officer and co-founder of Tower Bridge Advisors, shared their insights.
“The tailwinds of rising earnings are going to be good for stocks going forward, but clearly there’s a big message in the Greek crisis: and that is, sovereign debt nations have to pay attention to deficits and debts and ultimately, that includes [the US],” Meyer told CNBC.
Meyer told investors to “rein in some volatility” and warned that markets going forward will be bumpier than what we’ve seen over the last year.
In the meantime, Denbow said investors should own some gold for “diversification benefits.”
“Gold is specifically an uncorrelated asset so having it a little bit in the portfolio helps during these volatile times,” he said.
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No immediate information was available for Denbow or Meyer.