Hedge funds were once considered the juggernauts of the financial markets. Now, investor sentiment surrounding these funds is souring…
Back in the 1990s and early 2000s, hedge funds were considered one of the best ways for investors to build their wealth and protect against market volatility. This resulted in investors placing trillions of dollars in assets under management.
However, in the years that followed, investor confidence in hedge funds began to decline. And since 2018, they’ve largely lagged the S&P 500.
This trend has left investors increasingly dissatisfied, as they charge a variety of fees to manage and invest individuals’ assets while underperforming the market.
And given the steep cost and lackluster returns, many are wondering why they’re even paying the conventional price for hedge fund access when they can mimic their strategies for cheaper.
After all, only 3 hedge funds managed to outperform the S&P 500's 29% return last year…
That’s why many people are once again turning to gold. This is especially true as inflation-related fears continue to rise…
Gold is often considered one of the best ways to tangibly hedge against inflation, as it can be a liquid asset as well as a long-term store of value.
As a result, whenever the market grows increasingly uncertain, investors seek out the asset class to protect their wealth and avoid some of the risks and pitfalls of equities, bonds, and mutual funds.
This makes investments in precious metals great for diversifying portfolios and maintaining their values during tougher times.
And the fact that there are a variety of ways to gain exposure to gold helps as well, as individuals can physically purchase the metal, buy into exchange-traded funds, or invest indirectly through royalty companies, gold miners, futures, and options.
These components – and ongoing economic uncertainty – are part of what’s fueling the recently bullish sentiment surrounding the space.
It’s also why some analysts are forecasting the precious metal’s value could surge to a new high of $2,100 per ounce.
And given gold’s current price of $1,814, it could mean that now may be the right time to add it to your list of hedges before its value climbs even higher – as once it does, companies such as Franco-Nevada (FNV), Kirkland Lake Gold (KL), and Barrick Gold (GOLD) could soon surge in value.
Biggest Prediction of My 50-Year Career on Wall Street
Stansberry Research
You may have seen me on Jim Cramer's TV show.
But today, I'm going public with something I've never said on national air… not in any of my appearances on Fox Business or CNBC.
I'm a little nervous about it…
But I stand behind the big prediction I'm making right now… because I've never been more confident that a strange day I foresee coming to America could make you a great deal of money.
Granted, I've made plenty of controversial calls in my 50-year career. Like when I called the collapse of Priceline.com on Mad Money back in 2012.
Many experts didn't believe me.
But the stock plummeted 100 points overnight, showing a 733% overnight gain on one particular trade. I'm told it was the first time CNBC Mad Money held a reprise the next day.
Today, my newest prediction is even bigger.
In fact, I'm going one step further.
I'm giving away the ticker symbol of the #1 stock to buy now… using the same system that bears my name on every Bloomberg terminal on Wall Street.