Gold Is Bigger Bubble Than Tech, Says $63 Billion Asset Manager

Gold Is Bigger Bubble Than Tech, Says $63 Billion Asset Manager by Aoyon Ashraf for BNN

TDC Note – Here come the gold liars, the propagandist and the nay-sayers. Well, it’s not going to work this time around. My guess is this is merely the corporate media setting the table for a massive beatdown – which the metals are due. Gold could get back down to $1,800 – $1,700 range, not saying it will happen but don’t be surprised. Silver could get back below $20 – maybe as low at $17 – $16(?) – once again, not saying it will happen, but we could be seeing the table set for this type of acquiring opportunity!! This is the problem – if this type of dip were to happen, all product would evaporate overnight. Keep your powder dry and ready to deploy.

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Carillon Tower Advisers Inc. portfolio specialist Matt Orton is a rare critic when it comes to gold’s meteoric rise this year. He says excitement around the metal has made it a bigger bubble than tech stocks.

Orton, who is “quite bullish” on tech stocks, thinks the price of gold has gotten disconnected from fundamentals. The flow of funds into gold “shows how much enthusiasm and/or speculation has been going into the gold complex,” Orton said in an interview. His firm has more than $63 billion under management and is based in St. Petersburg, Florida.

“Everyone talks about the bubble in technology stocks,” but the tech sector is “rising because a lot of these companies have been able to increase their market shares during Covid,” Orton said. The tech firms also had strong earnings, providing higher visibility to their growth profile, Orton said. Gold’s rally, on the other hand, could “completely derail” once risk factors driving investors to safe havens ease, including lower rates and the weaker U.S. dollar.

Here are other details from the interview:

  • Orton recommends investors hedge their portfolio by diversifying, rather than allocating money into gold. He also thinks investors should keep some cash in “some form of low-duration assets,” which they can redeploy when needed.

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