Time To Position In Gold Is Right Now says Jim Rickards

Time to position in gold is right now James Rickards

Fed has hit the ‘pause’ button; No more rate hikes for foreseeable future

Fed’s theories bear no relation to reality and has blundered by raising rates

Growth is weak, inflation is weak, retail sales and real incomes are weak

Tight money, weak economy & stock bubble classic recipe for market crash

Reduce allocations to stocks and reallocate to defensiveassets such as gold

Gold will be the big winner when the Fed suddenly realizes its blunder

Gold in USD 10 Years

James Rickards, geopoliticaland monetary analystand best selling author of ‘Currency Wars’, ‘The Death of Money’and‘The New Case for Gold’wrote yesterday in the Daily Reckoning that thetime to position in gold is right now.

In an timelypiece, Rickards points out how the Federal Reserve is behind the curve, hastheories that bear no relation to realityand hasblundered by raising rates.This is happening at a time when the U.S. economy and stock markets are very vulnerable.

Rickards warns that growth in the U.S. remains weak, as are inflation, retail sales and real incomes. Tighter money in a weak economy with a stock market bubble is a classic recipe for stock market crash.

After making his case succinctly Jim concludes:

It’s time for investors to go into a defensive crouch by selling stocks and reallocating assets to cash, Treasury notes, gold and gold mining shares.

In particular, gold will be the big winner when the Fed suddenly realizes its blunder and has to pivot quickly to ease, probably by late summer. The time to position in gold is right now.

Jim Rickards

for The Daily Reckoning

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