Pecora Capital forecasts gold to top new highs
Adam Pike, News Editor
3 Apr 2014, 10:44 a.m.
Pecora Capital is expecting gold to reach new highs within 5 years as equities struggle and investors turn to gold as the ultimate safe haven asset.
Managing Director, Aaron Smith believes the U.S equity markets are overvalued and the recent stock market rally is a direct result of the Federal Reserve’s monetary policy
“The equity market expansion is purely a function of monetary policy, growth is not inspiring, and valuations are lofty. When there’s a stop or contraction to the Fed’s balance sheet, then you’re going to see more than a correction in equities.”
Initially, Smith expects gold to dip alongside equities before recovering and then outperforming the equity market over the long term.