By David Berman
The Federal Reserve essentially laid out a roadmap for raising interest rates when it released the minutes from its last monetary policy meeting earlier this week. What does that mean for gold investors? According to George Vasic, a strategist at UBS, it means they can expect the shares of gold producers to underperform in less than six months.
He expects the Fed will start raising its key interest rate in the first quarter of 2012. According to his research, gold stocks underperform the S&P/TSX composite index when the Fed raises rates, and gold also lags about six months before a rate-hiking campaign begins. His evidence: He looked at the last three rate-hiking campaigns, in 1994, 1999 and 2004 ?
Complete Story »
K. D. Aubert Sara Spraker Alexis Bledel Kim Kardashian China Chow
No comments:
Post a Comment