Stocks vs. Commodities—Pros Pick the Better Investment
The dollar is expected to be weak for “a substantial period of time” based on Fed Chairman Ben Bernanke’s press conference, said Michael Savage, president of Savage Financial Group.
“So we like ETFs that would track things like gold, oil, silver and natural gas,” Savage told CNBC.
“Oil and gas I would buy at this point, but it would be a trade,” he explained.
“I’d hesitate to sell gold and silver because I’d need a lot more dollars to buy them down the line.”
Commodities: A ‘Speculative Play’?
In the meantime, Tim Courtney, CIO of Burns Advisory Group, said commodities are looking like a “speculative play.”
He cited “all these commodities trading at close to all-time highs, and...bonds just having wrapped up their best 30-year real-return period that they’ve ever seen from 1981 through 2011,” he said.
Instead, Courtney advised investors to stick with stocks.
“These companies are providing goods and services that people use every day, so those earnings are more valuable and are not being priced like bonds and commodities—so stocks are the best value play.”
Savage’s Value Picks:
U.S. Oil Fund
SPRD Gold Trust
U.S. Natural Gas Fund
Courtney’s Value Picks:
MS M&A 500 D
Schwab Fdmt Intl Sm-Mid
DFA Emer Mkts Val
Scorecard—What They Said:
- Courtney's Previous Appearance on CNBC (Feb. 17, 2011)
- Savage's Previous Appearance on CNBC (Jan. 7, 2011)
More Market Intelligence:
CNBC Data Pages:
Savage holds USO, SLV, GLD and UNG personally and for his clients.
No immediate information was available for Courtney or his firm.