Gold Can Hit $1,200 in 12 Months: Strategist
Markets have been trading higher in the last few trading sessions, but will the rally continue? Alec Young, equity strategist at Standard & Poor’s, and Greg Olsen, partner at Lenox Advisors, shared their insights and investor advice.
“It’s not to say that we’re going to go straight up, [but] you can make a legitimate case for higher stocks by the end of the year,” Young told CNBC
“It may not be as strong as it has been in the last few months, but it seems to us that there’s more risk of being out of this market than in it right now.”
Investors shouldn’t try to predict the next correction or pullback, but stay long in this market throughout until year-end instead, he said. In particular, Young recommended gold as a place investors should look into.
“We love it—It’s a great long-term story,” Young said. “I call it the counter-cyclical commodity…There are plenty of things that can drive it long-term fundamentally…If we can get above $1,000 and stay there with some 'oomph,' we could see $1,200 in the next 12 months.”
In the meantime, Olsen said he expects the U.S. dollar to continue falling and as a result, he agrees that gold is a wise place to invest.
“That’s an opportunity to add to commodities holdings in your portfolio,” he said. “We still think gold has room to go from here—the dollar continues to weaken.”
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Disclosure:
Young owns shares of GLD.
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