According to the financial expert, the American stock market will face a further fate, which could be observed in Japan in the 90s, namely: explosive growth, and then stagnation before recovery. In his opinion, we are now in the stage of a “financial bubble”, which will complete all existing “bubbles”.
“It is highly probable that in the next two years we will see a decline in the economy, and this process, in its negative consequences, will surpass all previous downturns in US history, or, at best, will be similar to them. This is how far the problem with the inflation of the "financial bubble" of our time has gone. Therefore, since many assets do not generate interest income, it is better to keep your savings in cash in order to invest at the right time, when the value of promising assets will noticeably decrease, ”the analyst shared this opinion during an interview.
Until the end of this year, he himself plans to keep most of his savings in cash in order to have liquidity in case there is an opportunity to invest successfully.
As for gold, he, unlike analysts of the American bank Goldman Sachs, believes that the yellow precious metal has good chances for continued growth. Moreover, this asset allows you to save savings from a complete loss during periods of crisis in the economy. Now the expert would buy gold rather than the shares of American companies. However, he believes that the profitability of shares of mining companies may overtake the rise in the price of gold in the future.
According to Peter Grandich's forecast, it is highly probable that in the long term the price of gold could rise to the level of $ 3,000 to $ 4,000 per troy ounce. Now this seems incredible, but over time, this cost will be perceived naturally.