So where do stocks go from here? Underneath the hood in the near-term, growth stocks are staring down a period of volatility as interest rates begin to rise in step with the economic recovery and inflation expectations. Cyclical sectors have tailwinds as stimulus checks and pent up consumer savings pour into the economy.
But what stocks might do after the dust settles and the economy sets into a sustainable speed of growth next year is unknown. "Finding the longer-term relative values going forward is where you want to be in the equity market," Michael Gugino, portfolio manager of the multi-asset Permanent Portfolio Permanent mutual fund, told Insider on Monday., according to Morningstar data. Since its founding in 2003, the fund has returned 176%.
"You've got a race to devalue paper money, to devalue currency. You've got a tremendous amount of government spending and stimulus globally. You have negative real interest rates across the curve, from the 30-year in. And you have multiple avenues of demand, whether it's investor demand, personal consumption demand — jewelry — or central bank buying."
If you don't know..Now you know.
horrible