Very uncharacteristically, I’ll keep my word count under 200! A news program carried an ad which irritated me, so here goes:
TV ad: announcer noted that gold has gone up 400% in the last decade and asked the viewer if he wouldn’t want some gold in his portfolio.
My Answer: Sure – a decade ago!
Reminder: investment institutions have been required for a number of years to inform the reader/viewer that “Past performance is no guarantee of future results.” This is true for all investments, regardless of how speculative.
Outlook: Granted, gold may very well rise again if we start to lose the tug-of-war between the combination of rising federal debt (money printing) and food/ fuel prices versus suppressed employment/spending which has been surprisingly even-sided for years. (low inflation)
However, the public should not be mesmerized about the “400% over the last decade.” That’s a rear-view mirror look. Keep an eye on the road ahead. This is investing, not driving.