What do you do when you’re sure global stocks are running out of gas, rising rates are about to pummel bonds and your models show the only emerging market worth a bet is India? You buy gold, of course.
Fritz Folts did just that earlier this year after slashing his holdings of exchange-traded funds backed by stocks and cutting to zero his exposure to broad emerging-market ETFs, focusing instead on the U.S. and Japan. He says the positive growth momentum and favorable investor psychology that drove equities in 2017 diminished this year, and markets aren’t paying enough heed to the next round of U.S. Federal Reserve hikes.
