"Making money to me is exciting, even if I have to do it in boring stocks," Mike Larson of MoneyShow said.
Mike Larson: Gold, Silver, "Boring" Stocks — Keep Safe and Stay Patientyoutu.be
It can be tough for investors to decide where to put their money in today's tumultuous environment, but Mike Larson, editor-in-chief at MoneyShow, believes safety should be the top consideration for market participants.
Speaking to the Investing News Network, he said precious metals fulfill that role, as do "boring" stocks.
"Gold is outperforming many other asset classes," he said, noting that most people would rather have owned gold stocks this year than tech stocks. "(Gold) is still giving you some of that safety — (that) safety premium and safety insurance."
When it comes to stocks to consider, he mentioned companies in sectors that don't need a strong economy or raging growth to generate good earnings and revenue. These include consumer staples, utilities and healthcare.
"In your stock market portfolio, you want to be in defensive sectors," he said. "You want to be in things that are ... boring. But making money to me is exciting, even if I have to do it in boring stocks, right? Or even if I want to lose less."
He also believes it's a good idea to have more cash on hand than usual at the moment.
"Look — you're losing purchasing power to inflation, sure, but you're not losing 30, 35 percent in the average NASDAQ stock. You're losing a few percentage points to inflation, and you're having that reserve of cash. So when we do hit that turning point, when we do get to a place where the (US Federal Reserve) might take its foot off the brakes a little bit, then that's when you can start deploying that cash into much cheaper stocks and cheaper assets, mining shares or whatever your interests are," he said.
"Keeping more cash makes all the sense in the world, and I think you should continue to do that until this environment starts to ease off a little bit," Larson continued, adding that a change in direction from the Fed would also help gold and silver.
Watch the interview above for more from Larson on precious metals, and why he's focused on safety. You can also click here to read our recap of the New Orleans Investment Conference and here for our full event playlist on YouTube.
Don’t forget to follow us @INN_Resource for real-time updates!
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.