Hold Even More Cash In 2019 - RBC's Gero
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(Kitco News) - Our fan favorite "Invest Like the Experts” is back and this time with a twist!
Instead of asking our Experts to invest a specific amount in 2019, we decided to ask them what percentage investors should look to put into the market next year.
We have lined up some of the best-known names in the industry to find out just how much and more importantly, how they would invest their money in the new year.
2018 has proven to be an interesting year for precious metals, with gold currently trading lower from its highs earlier in the year. However, George Gero of RBC Wealth Management says it may be too early to give up on the metal.
Could gold be preparing for a new-year rally? Find out what the experts have to say!
Expert: George Gero
Claim to Fame: Managing Director at RBC Wealth Management, CME-COMEX Division Board Member
If an average homeowner has disposable income, what percentage do you think they should invest in 2019?
First of all, "expect to keep 15% [up from 10%] in cash equivalents due to market conditions,” he told Kitco News.
Where should someone invest in 2019? Which sectors are likely to boom in 2019?
Gero said that the sectors he thinks will perform well include: precious metals and gold, utilities, banks, large cap and dividend growth stocks.
What are the first steps anyone should take before making any investment?
To Gero, sound investments can be found with well-known, high-grade companies that are well rated.
What is the biggest red flag for you when it comes to considering a new investment?
"A red flag would be junk rated, less than investment grade and recently downgraded companies,” he warned.
Looking back, what was the best investment you made in 2018?
"Exchange stocks like CME, ICE, CBOE, among others as volatility added fees,” he explained.
What was one missed opportunity for you in 2018?
For Gero, the tech giants were among the missed opportunities of the year including, "Amazon, Walmart and some FANG stocks.”
What was the biggest market surprise for you in 2018?
While Brexit is still in talks, the focus has now shifted to how the U.K will actually break away from the European Union.
According to Gero, the biggest surprise of 2018, "comes from fallout on Brexit as British investors realize the extent of economic dislocations.”
Finally, what is the best investment advice you ever received?
"Don’t try to time the markets; buy and hold quality for the long term like Warren Buffet,” he said.
He added that it is always sound for an investor to, "keep 10% in precious metals.”