Traders stampeded out of gold, emerging markets and bonds this month, setting record monthly outflows in June. Ever since the Federal Reserve hinted that signs of a stronger economy could allow for a slowdown of stimulus, markets have protested the news.
It’s challenging to have the fortitude to hold on to investments during a one-day carnage event like last Thursday. Everywhere you looked there was red on the screen. So what should an investor do after a day like Thursday?
Spot market gold bullion prices touched fresh three-year lows Friday at $1,269 an ounce before recovering a little by lunchtime in London, as stocks and commodities also regained some ground after sharp falls yesterday.
The fall in the price of gold has triggered a new run on physical gold that shows no sign of abating. Record amounts of money have exited ‘paper,’ i.e. futures and ETFs, and headed straight to the bank or the mint to be exchanged for coins and bullion bars.
Jordan Roy-Byrne was able to achieve some marked success in last year's choppy market by buying growth-oriented producers. After the broader market tops out, he is watching for the same stocks to outperform again.