Bob Hoye, of Institutional Advisors, discusses gold, the stock markets and his outlook for a variety of asset classes.
We’re very bullish on the long-term for gold and for the gold producing stocks and the whole sector. But, I think the shake-out here will include gold stocks.
Mr. Hoye seems to have a similar opinion to what we discussed in Why Gold Can Still Go Down and what Karl Denninger wrote about in A Sober Reminder on Black Friday, suggesting that any negative hit to the stock market will also affect precious metals to the downside. When this will happen is certainly a matter of speculation, but it seems that the inverse correlation between the dollar and gold/stock markets will remain (for now) in the event of a rapid and violent down-turn.
For those waiting for a good price to stock up on more precious metals assets, keep your eye out, because if/when it does happen, it may be the last opportunity to move into sub-$1000 gold for a long time.
Listen to the audio interview with Howe Street to get an understanding of why and how Mr. Hoye comes to his conclusions.