(Kitco News) – Week 2 of Invest Like The Experts (#InvestLike) is here and we are asking our industry experts where they’d invest $100,000 in 2016.
Remember, Kitco News will be running this feature every Friday for the next few weeks. A new expert will be unveiled every week so be sure to come back to find out where some of the best investment gurus are putting their money next year. This week, we highlight veteran commodity investor George Gero.
PART I: Vince Lanci tells Kitco News how he’d invest $100,000
PART III: Rickards: Fed, USD, Inflation To Have Biggest Impact On Gold In ’16
Expert: George Gero
Claim To Fame: Vice President & Precious Metals Strategist for RBC Capital Markets
How would you invest $100,000 in 2016?
10% gold OR precious metals ETFs,
10% in cash and equivalents
40% in fixed income in US issuers
40% in US Equities
According to Gero, his allocations are based on his economic and political outlook for the U.S, as well as global inflation indications. He also noted that his allocation towards gold or precious metals ETF contracts has increased by 5% since last year due to lower metals prices.
As a final note of advice, Gero said that it is important to be “re-balancing, if necessary, portfolios every six months between dividend growth and prime income holdings.”
What factor will affect gold the most in 2016?
“Monetary policy of the U.S. and euro-zone central banks, monetary policy of PBOC and Japan,” Gero said when asked what will affect gold prices the most next year.
According to this veteran commodity investor, there are several other factors to consider as well, including geopolitics, global consumption needs once the eurozone and China recover, the direction of the U.S. dollar against major world currencies as well as U.S. politics and the upcoming presidential election.
What is your New Year’s investment resolution for 2016?
“I will be following the recommendations of my firm in securities and fixed-income investments,” Gero said.
By Daniela Cambone and Sarah Benali of Kitco News dcambone@kitco.com and sbenali@kitco.com
Follow Daniela Cambone on Twitter @DanielaCambone and Sarah Benali @SdBenali