“As recession fears rise, Bernstein is suggesting investors look to gold and gold mining stocks to reduce risk. The firm’s global quantitative trading strategy group on Monday sent a note titled ‘a strong case for holding gold.’ ‘We show that from current equity valuations and from similar points in previous cycles gold and equities give more similar returns … [to] risk assets such as equities,’ Bernstein said. ‘A material shift in geopolitical risk and a near-record build up in government debt make other potential risk-free assets more questionable and also bring a temptation to create inflation, thereby further enhancing the case for gold,’ the note added. The current geopolitical environment is heading toward a period in which neither stocks nor bonds will work – therefore pushing investors to gold, Bernstein said.”
The risk of loss in the trading of stocks, options, futures, forex, foreign equities, and bonds can be substantial and is not suitable for all investors. Trading on margin or the use of leverage is not suitable for all investors and losses exceeding your initial deposit is possible. Supporting documentation is available upon request. Trading futures, options on futures, and FX involves substantial risk of loss and is not suitable for all investors. Carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources and only risk capital should be used. Opinions, market data, and recommendations are subject to change at any time. The lower the margin used the higher the leverage and therefore increases your risk. Past performance is not necessarily indicative of future results.