Tags: gold | bonds | economy | David Rosenberg | Gluskin Sheff

Rosenberg: Buy Gold, Bonds Amid Weak Economy

By    |   Friday, 11 Nov 2011 09:17 AM

With the U.S. economy in stagnation mode, interest rates are going to keep sliding, predicts David Rosenberg, chief economist at Gluskin Sheff + Associates. As a result, investors would do well to pursue gold and bonds, he writes in a report obtained by MarketWatch.

Rosenberg presents his thoughts regarding bonds in an opinion piece in The Toronto Globe & Mail.

“Given today’s low yields, many investors are wondering why they should own bonds,” he writes. “I hold a different view. To my way of thinking, the great bull market in bonds is still alive and well. Over the next two to three years, I expect bond investors to prosper.”

The benign outlook for inflation will help boost bonds, Rosenberg says. Aging baby boomers will help keep a lid on price increases, by cutting their spending habits and saving for retirement.

To be sure, bonds won’t rise forever, Rosenberg writes. “Perhaps within two to three years, the Great Bull Market in bonds will grind to a halt when rates can’t go any lower.”

As for gold, the precious metal’s surge to a seven-week high above $1,800 has made many investors bullish.

"It feels like with the current situation in the euro zone, gold should be able to break the all-time highs quite soon,” possibly before year-end, Afshin Nabavi, head of gold trading for MKS Finance, tells Reuters.

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With the U.S. economy in stagnation mode, interest rates are going to keep sliding, predicts David Rosenberg, chief economist at Gluskin Sheff + Associates. As a result, investors would do well to pursue gold and bonds, he writes in a report obtained by...
gold,bonds,economy,David Rosenberg,Gluskin Sheff
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Friday, 11 Nov 2011 09:17 AM
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