Collapse of Stock Market Is Likely; Gold Prices to Benefit -The Street
"As investors shy away from precious metals, interest is piling onto risk assets like equities that are fueled by 'cheap money' injected by the central bank, this according Todd Horwitz, chief strategist of BubbaTrading.com.
'Therein lies the real issue, is that cheap money continues to propel [returns], and the only real place to get a return on your money is the U.S. stock market,' he said, which he said is a bubble and will eventually collapse. Horwitz noted that in the event of a bubble burst in equities, alternative assets like gold will benefit...'Over time, gold's going to go much higher, but in the near-term here, I don't think there's anything that's going to change the direction of where gold's headed. To me, it's chopping around here and it will go higher, but it may go lower first,' Horwitz told Kitco News. This would be a good buying opportunity for metals for investors with a longer time horizon, Horwitz said. 'If you have a long-term horizon and you're going to hold on to it, then you could buy anything, because again, it's going to rise in value, the question is when,' he said."