(INTELLIHUB) — A Goldman Sachs commodities team suggests that gold may “outperform” in the coming months amid growing fears of an upcoming stock market bobble.
A man by the name of Eugene King leads a team of Goldman Sachs analysts who believe now is the time to invest in gold.
“Last week, the Federal Reserve approved the widely anticipated quarter-point rate hike to put the new benchmark funds rate at 1.75 percent. Central bankers, led by Jerome Powell in his first meeting as chairman, also hinted the path of rate hikes could be more aggressive,” as CNBC reports.
Historically speaking, when the stock market has fallen from rate hikes gold typically climbs which is what makes the tangible metal such an appealing investment.
“Based on empirical data for the past six tightening cycles, gold has outperformed post rate hikes four times,” one analyst explained.