Background:
During the past five years, the money supply has increased from $15,993.8 billion to $21,762.5 billion, and the velocity has increased from 1.128 to 1.383. During this period, gold reached new all-time highs, and interest rates increased. My long-term outlook over the next five years is that interest rates will decline, and gold will not be a good investment. The changes to tariffs and regulations made by the Trump administration are deflationary. Long-term high-quality bonds should perform well in this environment.
Recommendation for Retirement Accounts:
Reduce your exposure to hard assets like gold and silver. Increase your exposure to high-quality bond funds that hold longer-term bonds with maturities greater than ten years.
Happy Trading,
Dave Register
CTA