Why Steve Forbes Was Surprised by Gold’s Rally – Part 2

from Kitco NEWS

lass=”” >Much has happened in the marketplace since Kitco News last spoke with media mogul Steve Forbes; gold has seen its biggest rally in decades, while the U.S. equity markets have also risen to multi-year highs. However, the chairman of Forbes Media said he wouldn’t get too excited about what’s happening in the U.S. stock market. “The stock market reflects big companies… I don’t see much room for the market to go up until earnings turnaround,” he explained. “Earnings have been in a plateau for a year and half…small cap companies have not done very well compared to big cap companies. That’s the sign of a mature phase of a bull market.” With regards to gold, Forbes said that he remains confident in the precious metal even if he was surprised by its rally this year. “Gold is an insurance policy against turmoil and governments misbehaving towards the currency. When you see the price change, that’s people’s perceptions of currencies,” he said. “I was surprised by the rise of gold this year given the Fed’s attitude in terms of starving credit to small and new businesses.”

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