Money Manager McLennan: Gold a Worthy Hedge Against Risk Assets

Friday, 15 Aug 2014 07:54 AM

By Dan Weil

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
Gold represents a wise investment to hedge against the lofty level of risk assets, says Matt McLennan, manager of First Eagle Global fund.

The S&P 500 stands within about 2 percent of its July 24 record high.

"The goal for us is to create an all-weather portfolio," he tells CNBC. "We're in an environment where risk assets are trading at rather elevated levels relative to history on the back of very easy policy."

Editor’s Note:
Dow Predicted Will Hit 60,000 — Buy These 4 Stocks Now


First Eagle Global is allocated 70 percent to stocks, 20 percent to cash and 10 percent to gold and gold miner stocks.

"We live in a world where there's too much debt and not enough jobs, and that's leading to financial repression everywhere," McLennan argues.

"And in a world of monetary abundance, we're looking for scarcity, be it in businesses that have hard-to-replicate assets or business models, or in gold itself as nature's alternative to the man-made financial architecture."

The fund has stakes in Gold Corp. and Gold Fields.

"Suffice to say if you think gold is an important part of the ballast of a portfolio, and if you can get it at a discount through the ownership of a gold miner, that makes sense," he notes.

Frank Holmes, CEO of U.S. Global Investors, is bullish on gold mining stocks too.

"Autumn is right around the corner, when the gold jewelry industry traditionally replenishes its stock. And with unrest in Ukraine and the Middle East continuing to drive the fear trade, as unfortunate as these events are, gold prices appear buoyant," he writes on Business Insider.

"This bodes well not only for investors in bullion but also mining companies, which will likely proceed with cost-cutting initiatives to maintain or expand margins."

Editor’s Note: Dow Predicted Will Hit 60,000 — Buy These 4 Stocks Now

Related Stories:

© 2014 Moneynews. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Meredith Whitney's Hedge Fund Reportedly in Turmoil

Saturday, 20 Dec 2014 11:43 AM

The hedge fund Meredith Whitney started last year after she became one of Wall Street's best-known analysts is in turmoi . . .

Yellen’s Patience Echoes Greenspan 2004 Run-Up to Rate Liftoff

Saturday, 20 Dec 2014 11:40 AM

Federal Reserve Chair Janet Yellen is taking a page from predecessor Alan Greenspan's 2004 playbook, a step that appears . . .

John Kasich 2016: 7 Key Political Positions of GOP Presidential Hopeful

Friday, 19 Dec 2014 22:22 PM

John Kasich has been involved in the national scene since the 1980s as a U.S. congressman and popular governor from Ohio . . .

Most Commented
Top Stories

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved