Source: CNBC

“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.”

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