Gold is a buy, but bonds may be a bust

03/26/2024 03:08
Gold is a buy, but bonds may be a bust

In Monday's installment of Good Buy or Goodbye, Sound Planning Group CEO David Stryzewski joins Yahoo Finance anchor Josh Lipton to discuss why he recommends buying gold (GC=F) while avoiding bonds. Stryzewski endorses gold as an asset class to buy, pointing out that it has broken above all-time highs and sustained the position. Stryzewski claims $2,100 is the "new foundation," adding, "it's just up from here." He also notes that prices have been climbing because central banks are actively purchasing gold on "an annualized basis," citing China as an example, which he says has acquired "thousands of tons of it." The only potential risk he identifies is the US dollar given the inverse correlation between its pricing and gold's. On the other hand, Stryzewski recommends steering clear of the iShares Core U.S. Aggregate Bond ETF (AGG). He explains that the Federal Reserve's outlook on rate cuts remains uncertain, and with bonds exhibiting "a seesaw effect" in response to interest rate movements, the value of bonds could take a hit. He also notes that treasury yields are "safer" than the yields on bonds, which is how investors receive returns. Catch more of Good Buy or Goodbye here, or watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Angel Smith

In Monday's installment of Good Buy or Goodbye, Sound Planning Group CEO David Stryzewski joins Yahoo Finance anchor Josh Lipton to discuss why he recommends buying gold (GC=F) while avoiding bonds.

Stryzewski endorses gold as an asset class to buy, pointing out that it has broken above all-time highs and sustained the position. Stryzewski claims $2,100 is the "new foundation," adding, "it's just up from here." He also notes that prices have been climbing because central banks are actively purchasing gold on "an annualized basis," citing China as an example, which he says has acquired "thousands of tons of it." The only potential risk he identifies is the US dollar given the inverse correlation between its pricing and gold's.

On the other hand, Stryzewski recommends steering clear of the iShares Core U.S. Aggregate Bond ETF (AGG). He explains that the Federal Reserve's outlook on rate cuts remains uncertain, and with bonds exhibiting "a seesaw effect" in response to interest rate movements, the value of bonds could take a hit. He also notes that treasury yields are "safer" than the yields on bonds, which is how investors receive returns.

Catch more of Good Buy or Goodbye here, or watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Angel Smith

Read more --->