Get Out Of Gold and Stocks: Strategist
It is time to take some risk off the table following a very strong start to September, according to Robin Griffiths, a technical strategist at Cazenove Capital in London.
“Unless we hit the April high on the S&P 500 or 1265 on gold, both asset classes are set to make losses, with equity markets bottoming out in October,” Griffiths said.
Click to watch the full interview with Robin Griffiths
“Following big losses for equities in August, the rally last week was to be expected, we were very oversold,” he told CNBC.com
“We are now entering what are normally the worst four months for markets and we will see new lows hit in October, at which point the market will discount the prospect of the mid-term elections,” he said. “The market will realize Obama is a lame duck one-term loser.”
“The real message has been coming from the bond market, which last month began to tell us there is really bad news out there. Following massive buying in August, we have seen some selling but this will not last.“
With gold trading at near record highs, Griffiths is advising clients to take profits.
“The only risk to that view is gold hitting 1265, from which it could hit 1320, otherwise we will see losses; the miners have not followed the recent gains higher,” he said.