Commodities, gold to outperform in the long run
Most veteran money managers still believe commodities will hold value and outperform in the long term, despite recent slump in gold and silver prices, along with oil and other natural resources.
Emerging markets continue to promise strong upward development. Growth in world’s nascent economies will create a bold new consumer class, whose desire for more and better will feed demand for raw materials, industrial and precious metals, along with food and water.
The Far East, China, India, Latin America, South America, Brazil, Argentina, Chile’s economies are growing, even with setbacks from time to time. More people are employed and better jobs provide them the necessary income to afford houses, cars and lifestyle accessories.
Swings and corrections are natural and should be expected with investments.
In April, prices for precious metals and commodities might have come too far, too fast.
However, day-to-day or even quarter-to-quarter gyrations shouldn’t’t be a concern for heavy weight investors. The long-term focus steers their portfolios through a sector’s booms and busts.
Quarterly results, stock markets’ performance or braking news are not factors to affect long term positions.
Successful portfolios should spread across gold, silver, natural resources stocks, Swiss francs and some governments-backed bonds.
In particular, gold is viewed as an insurance policy against inflation and devaluation of currency.
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