Whether you’re making a short-term speculation or a long-term investment, it’s important to know your entry and exit points, said the Oxford Club’s Marc Lichtenfeld.
As interest in gold continues to increase, Marc Lichtenfeld is encouraging investors to add the yellow metal to their portfolios if they haven’t already.
Lichtenfeld, who is the chief income strategist at the Oxford Club, told the Investing News Network that he sees gold as an important portfolio diversifier in the face of the current macro environment.
“From an investment opportunity, I think what is important is that we have printing presses around the globe just churning out dollars and yen and euros. Interest rates are very low, (and) all of this money printing is very inflationary,” he said. “Traditionally that is very positive for gold.”
Lichtenfeld’s focus at the Oxford Club is income investing, which means his aim is to identify income-producing investments. In particular, he’s interested in companies that consistently raise their dividends from year to year, such as AbbVie (NYSE:ABBV) and AT&T (NYSE:T).
He noted that it’s up to each individual investor to determine what type of portfolio allocation works best for them, but did emphasize a diverse mix that includes gold.
His key piece of advice for market participants in terms of gold is to know what play they’re making.
“Just be careful that if you are speculating on gold; if you’re getting into a short-term trade, know why you’re getting into that trade. And if the trade doesn’t work out — there’s an old saying, don’t ever let a trade become an investment,” he said. In other words, have an exit strategy in mind and stick to it.
Conversely, Lichtenfeld encouraged long-term gold investors not to give up if the price dips.
“If you’re planning on diversifying and investing in gold for the long term … if it goes against you, don’t just rip up those plans and say, ‘Well, it went against me, I’m getting out.’ If you’re a long-term investor, then plan to hold on for the long term in order to diversify your portfolio — don’t get shaken out of the market by a short-term bump in the road.”
Watch the interview above for more from Lichtenfeld on gold and income investing.
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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.