Looking at the market as a whole, Nightingale says that while he believes the US Federal Reserve can complete its stimulus program, he still doubts the rate hikes will go as planned.
“Perhaps they can start to cut financial aid and even complete it, but I would be shocked if the market allows them to really raise rates,” he explained. If the US Central Bank takes a more hawkish position, he said, there is a risk of market hysteria.
At the same time, he said, the Fed is unable to continue printing money: "The problem is that the Fed is shackled by 8 percent inflation - it cannot print as much money, the government cannot use the same measures." Accordingly, he says, the Fed is in a real difficult situation: it needs to decide how much stimulus is possible without preventing inflation from rising to 10, 20 or more percent and not creating real problems for citizens with middle and low incomes.
On the gold side, Nightingale says he welcomes the consolidation in the gold price last year, as the yellow precious metal needed a breather after the marathon from 2018 to mid-2020. He sees the potential for the price of gold to rise to $ 3,000 an ounce in the next 2022. However, there is also a risk that the price will decline to $ 1,600 an ounce. But even a decline to this level should not cause fears among investors. He himself regularly buys only at the lows and gradually builds up his positions in gold, keeping his share in the investment portfolio at 10%.