Investment in real estate and gold over stocks and bonds has become an emerging trend amongst leading fund managers in the US.
According to Bill Gross and Jeffrey Gundlach, two of the biggest players and high-profile, outspoken investors in the financial world, buying ‘real assets’ such as gold and land are the only assets making money in todays economic climate.
Gross, in his monthly investment outlook for August, wrote “I don’t like bonds; I don’t like most stocks; I don’t like private equity.” He went on to state that “real assets such as land, gold and tangible plant and equipment at a discount are favoured asset categories.”
In a similar but perhaps even more direct chord, Gundlach, who manages more than $100bn in assets at DoubleLine Capital, advised investors to “sell everything… nothing looks good here” in an interview with Reuters at the end of last week.
So what is looking good?
According to Gross, what central bankers haven’t been purchasing;
“Central banks have not bought a lot of gold… they have not bought real estate to this point.”