Worried About Stocks? Choose Gold Over Bonds for Safety, BlackRock Says

Worried About Stocks? The Safety Case for Gold Over Bonds.

The U.S. banal marketplace is having a pugnacious clip amid trade-war fears. Investors should instrumentality with equities implicit the agelong word but those looking for a near-term buffer should spell for golden alternatively of Treasury bonds, according to BlackRock.

“We enactment overweight U.S. stocks arsenic argumentation uncertainty should easiness implicit a six- to 12-month horizon. We don’t spot semipermanent bonds arsenic reliable portfolio diversifiers, adjacent if maturation suffers, fixed persistent deficits and inflation,” wrote Jean Boivin, caput of the BlackRock Investment Institute, successful a probe note.

Mostly, the counsel is against panic. Despite the S&P 500’s autumn into correction territory, BlackRock notes net are expected to turn 12% this year, hardly down from 14% past September. Meanwhile successful the hard-hit exertion sector, margins, net and gross forecasts are holding up and escaped currency travel is astatine 30% of sales, the highest stock since 1990.