Economist Gurwitz: 'Overall Picture' for Stocks and Bonds Not Good

Thursday, 29 May 2014 06:07 PM

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As the price of gold nears its bottom and the stock market is near its top, the "overall picture" for stocks and bonds are "not looking so good . . . for the next several years," says economist David Gurwitz, managing director of Charles Nenner Research.

Gurwitz told J.D. Hayworth on "America's Forum" on Newsmax TV Thursday that, starting this year, the Dow Jones Industrial Average will go "down well over 50 percent from its level now and, then afterwards, a major move up over the next decade, but we'll have to survive the next five or six years."

The Dow is currently at 16,698. In February 2009, at the beginning of the recession, it fell to almost 7,000.

Gold is currently at $1,256.10, which is the lowest its been since February when it was at $1,255.68.

"[Gold is] going to go lower," Gurwitz said. "The cycles aren’t bottoming yet . . . and it's not time to buy, but it will be."

"It's been very difficult to be in gold the last two years as you know, but it's getting near time when it will be a bottom," he explained. "Gold stocks look like they're bottoming a little bit later," so July and August "should be a good time" to start buying gold again "for quite a while."

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The Wall Street Journal is reporting that the dip in gold is part of the fallout from the geopolitical tensions between Russia and Ukraine.

Gurwitz explained that the Russian and Ukrainian tensions, disputes between Japan and China, and problems in the Middle East are all "hotspots" that play a role in the economic cycle.

"We don't know what causes what, we just follow each thing independently, but we don't think it's going to be really positive," he added.

Gurwitz says that right now stocks and bonds will make good short term investments, and gold, silver and grains are good long term investments.

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