So much love for gold out there. So little to show for it.
In a new report, Merrill Lynch chief investment strategist Richard Bernstein concluded that small-cap stocks have offered the best risk-to-reward over the last 40 years and that gold has done the worst. The report also argues that investors who think long-term will generally win out:
“With the exception of gold, investors had little chance of losing money in our selected asset classes over 10-year time periods,” Bernstein said. “Only in the current bear market did many equity benchmarks generate their first trailing 10-year losses for the periods we analysed.”
Of course, past performance, as the say, is no guarantee of future results.
The belief among the many so-called gold bugs is that is that fiat currencies are bound to collapse, and the shiny yellow stuff will return to prominence as a store of value. Good luck to them.