Schiff also advises investors to have a lot of foreign cash, such as euros, Swiss francs, yen and Australian dollars. Last week’s global selloff should not be a concern, Schiff added, because in the bigger picture, foreign stocks are better positioned amid U.S. overconsumption.
Stay out of U.S. stocks, he suggests, because fundamentals are “terrible.” The Dow industrials may have hit a new high, but adjusted for inflation, it’s still below the peaks of 2000 and headed for the lows of 2002, he said.
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U.S. equities are important for any long-term growth-oriented investor, Michael Cuggino, president and portfolio manageroffive-star fund Permanent Portfolio Funds, told Liz Claman on “Morning Call.”
Diversify, Cuggino advises, and get a mix of U.S. stocks, gold and other precious metals, commodities and natural resources. He recommends buying stocks in financial services, technology, biotech, pharmaceuticals, media and entertainment.
“U.S. stocks weren’t expensive a week ago and they’re less expensive now,” Cuggino said. “The general trend for the U.S. economy is one of growth. We have slowdowns and recessions, etc. in the short term. But in the long term, we’re growing and we expect that to continue.”
If you’re looking for short-term plays, Liam Dalton, president of Axiom Capital Management, suggests cash and stocks not highly correlated to the market.