With only one week remaining before the U.S. presidential election, there’s a growing sense of uncertainty in the air. Investors are wondering how to position their money, bracing for the possibility of significant volatility and market shifts.
According to Paul Tudor Jones, founder and CEO of Tudor Investment Corp., this puts the U.S. in a precarious position—one that’s unsustainable in the long run unless serious action is taken to rein in government spending. The Fed will likely try to “inflate” its way out of this mess, meaning it will keep nominal interest rates lower than inflation to support economic growth. For investors, this means that preserving wealth will require smart positioning in alternative assets.
According to data from the World Gold Council, gold has consistently outperformed both inflation and the growth rate of the world economy. From 1971 to 2023, gold's compound annual growth rate was 8%, compared to 4% for the U.S. consumer price index and 7.8% for global GDP growth. Here’s a news flash for you: Over the long run, it may not matter as much as you think. Larry Fink, CEO of BlackRock, made a great point recently when he said that he’s “tired of hearing this is the biggest election in your lifetime. The reality is over time, it doesn’t matter.”