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