Gluskin Sheff’s Rosenberg Bullish on Gold, Dividend Stocks

Tuesday, 02 Oct 2012 08:58 AM

By Dan Weil

Share:
A    A   |
   Email Us   |
   Print   |
   Forward Article  |
  Copy Shortlink
Stocks and bonds have been volatile within a narrow trading range since the Federal Reserve announced its latest easing move Sept. 13.

In this environment, gold and dividend stocks represent strong investments, says David Rosenberg, chief economist and strategist at Gluskin Sheff, in a commentary obtained by Business Insider.

The precious metal touched an 11-month Monday, with the December Comex contract closing at $1,794 an ounce.

Editor's Note: Prophetic Economist Warns: “It’s Curtains for America.” See Evidence.

Gold has gained not only from expectations that the third round of quantitative easing will spark inflation, but also from trade tension, Rosenberg says. He cites the U.S.-Mexican tomato dispute, the U.S.-European aerospace conflict and trade spats between the United States and China as examples.

As for dividend stocks, they have thrived the past 3 1/2 years as investors seek yield in an environment of record low interest rates. Thanks to a strong earnings environment, 257 of the Standard & Poor’s 500 companies have announced dividend increases this year, Rosenberg notes.

He also likes food and fertilizer investments. Corn inventories have slipped, and wheat prices are likely headed higher, Rosenberg says.

And finally, he recommends corporate bonds, thanks to companies’ strong balance sheets.

On the gold front, Federal Reserve Chairman Ben Bernanke’s comments Monday that the Fed will keep easing even as the economy recovers convinced some experts the rally will continue.

“People are hurrying up and buying gold” in light of those remarks, Frank McGhee, head gold dealer at Integrated Brokerage Services, tells Bloomberg. “The inflation worries are back.”

Editor's Note: Prophetic Economist Warns: “It’s Curtains for America.” See Evidence.

© 2014 Moneynews. All rights reserved.

Share:
   Email Us   |
   Print   |
   Forward Article  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Lockhart: Fed Must Align Projections With Policy Statement

Wednesday, 16 Apr 2014 08:53 AM

The U.S. Federal Reserve should try to make its communications on the expected path of interest rates and the economy co . . .

Housing Starts Rise Less Than Expected as Permits Fall

Wednesday, 16 Apr 2014 08:36 AM

U.S. housing starts rose less than expected in March and building permits fell, pointing to underlying weakness in the h . . .

Fed Should Bolster Low-rate Vows, Two Officials Say

Wednesday, 16 Apr 2014 08:44 AM

The U.S. Federal Reserve ought not to raise interest ratesuntil the economy is much closer to full strength, two of the  . . .

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