Marc Lichtenfeld of the Oxford Club said he thinks inflation will be “significantly stronger than anybody really is talking about.”
Gold’s price performance this year has so far not matched 2020’s record-setting levels, but many market watchers believe the long-term picture continues to look bright.
Speaking to the Investing News Network, Marc Lichtenfeld, chief income strategist at the Oxford Club, shared two factors he views as positive price drivers for the yellow metal.
“There is the threat of inflation, and we also have monetary printing presses around the globe in overdrive … printing as many dollars and yen and euros as they possibly can,” he said.
“I think those two things especially will contribute to gold being a strong performer over the next several years. This is something that’s going to last for a little while, certainly.”
Looking more specifically at inflation in 2021, Lichtenfeld said he thinks it will be “significantly stronger than anybody really is talking about.” He explained, “There’s just a lot of money sloshing around, chasing a limited supply of goods and services — and so that has to raise prices.
Gold is typically viewed as a good hedge against inflation, but what else can investors do to create an inflation-proof portfolio? Lichtenfeld recommended looking at value stocks.
“In value stocks I like things like commodities, industrials, chemicals — really anything that is going to kind of feed the economy, that’s going to go into products that people are going to consume … anything that’s going to feed and supply all this growing demand I think should do quite well,” he said.
Aside from that, Lichtenfeld has long had an interest in biotech stocks, although he stressed the importance of choosing the right companies in that sector.
“Regardless of what’s happening with inflation and the pandemic and the macroeconomy, people always need new, innovative drugs and therapies, and when a company comes out with one — whether it’s a new therapy for cancer, or a rare disease or a cardiac condition — those companies typically will do very, very well as they bring their drugs to market,” he noted.
Watch the interview above for more from Lichtenfeld on gold and his other areas of interest.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.