The next decade looks promising but still hold 30% in gold - Dennis Gartman
Editor's Note: 2020 is expected to be another year of significant uncertainty and turmoil. But the question is what assets will emerge the victor when the dust settles from the global trade war, Brexit, recession threats, negative bond yields. It's a showdown of global proportions, so don't miss all our exclusive coverage on how these factors could impact your 2020 investment decisions.
(Kitco News) - The U.S. will soon be closing the book on a momentous decade as the S&P sees its longest bull run in history; it has rallying consistently for the last 10 years. The Index is up 184% since 2010.
The gold market is also attracting new attention on the cusp of the new epoch. Although prices are still down from its record highs hit eight years ago, the precious metal is ending the decade with a gain of 34%.
The question investors are now asking is: what is in store for investor and markets as the world embarks on a new decade. What are the risks and opportunities to watch for in the next 10 years?
For Kitco News’ Showdown 2020 outlook, we are have asked a panel of experts their thoughts on the next decade and how they would invest $100,000 for the next decade.
As we intoduce this week's expert, we want to acknowledge the end of an era on the cusp of a new decade. Dennis Gartman recently annouced that, after more than 30 years, he will no longer be publishing his coveted and widely followed Gartman Letter.
Expert: Dennis Gartman
Claim to Fame: Former editor and publisher of the Gartman Letter
How would you invest $100,000 in the next decade?
For the next decade I'd hold 30% in gold of some form; I'd hold 30% in various closed end bond funds that pay dividends monthly (there are dozens of them!); I'd hold 30% in commodity related businesses; and the final 10%, I'd hold in Emerging market ETFs.
What are the biggest trends you are watching heading into the new decade?
The big trend shall be a return to the commodity markets as inflationary pressures finally return, given the expansionary policies presently being followed by the leading and the second-tier central banks.
What are the biggest threats you see in the next 10 years?
The biggest threat is rising populism and trade protectionism; the second biggest threat is the rising possibilities of real war between the US and China.
How would you describe the outlook for the next 10 years?
My outlook for the next decade is one of hopeful but worried optimism that all will be well and that the threats I fear just above prove wrong.
How long do you think the bull run in equities will last?
The bull market will run until it ends; that's the wisdom of 45 years in the markets! That's what I've learned… the very hardest of ways!
Any final comments about what the next decade holds for investors?
As for the next decade, there will be progress aplenty regarding health care and medicine; the internet will continue to drive the global economy to greater heights; democracies will prosper; oligarchies will wane and nuclear fusion will become a reality making energy boundless and free!