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Mother of all bubbles will pop, no fast recovery in sight; Gold to hit $4,000 - Peter Grandich

Kitco News

The U.S. stock market is likely experienced what Japan did in the 1990s; an implosion and then stagnation before a recovery, said financial advisor and market commentator Peter Grandich of Peter Grandich & Company.

“I’m going to own more cash than anything else between now and the end of the year,” Grandich told David Lin, anchor for Kitco News.

Grandich discusses why we are currently in the “financial bubble to end all bubbles.”

“Over the next two years, there’s a possibility that we will suffer a decline that will surpass or equal some of the worst declines ever in the history of the U.S. because that’s how far advanced I think this bubble is. And therefore, even though it may not return anything or pay interest at this point, being in cash to take advantage of those substantial declines in prices is now prudent, at least for me,” he said.

The problems in the U.S. are further compounded by deep political divide, as well as a lack of savings to prepare for retirement.

The average American has less than $100,000 saved fore retirement. The expectation now is that it’s $2.7 million to live a so-called decent lifestyle in retirement, and that’s one of the biggest untalked about things on Wall St. right now: the unpreparedness of America to reach retirement, especially since people are now living much longer than they used to,” he said.

For Grandich’s gold price forecast and investment advice for retirees, watch the video above. Follow David Lin on Twitter: @davidlin_TV (https://twitter.com/davidlin_TV).

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.