Many retirees see it as an alternative to stocks
by Mark Hulbert
Do retirees have an alternative if they believe that bonds are guaranteed to lose to inflation and stocks’ outlook is too uncertain?
It’s an urgent question. Given plunging interest rates, the 10-year Treasury currently yields minus 0.50% after inflation (assuming the current 10-year break-even inflation rate of 1.18%). And even Warren Buffett, who has made a career being a cheerleader for stocks’ long-term potential, said at Berkshire Hathaway annual meeting several weeks ago that he’s not buying stocks right now because he does not “see anything attractive.”
Many retirees and soon-to-be retirees are looking to gold as an alternative.