Why this top fund manager says the best investment this year is 'the hedge against political cycles'

Published On Sep 21, 2024, 11:00 AM

Jan van Eck, CEO of VanEck, suggests that investing in gold may be a better hedge against political cycles than focusing on artificial intelligence (AI). Gold has appreciated significantly, up 28% this year, and is performing well amid market uncertainties. Van Eck emphasizes the strength of both gold and gold mining stocks, particularly highlighting the performance of the VanEck Gold Miners ETF (GDX), which is up 31% this year. He also mentions that there continues to be robust interest in semiconductor investments despite premiums in AI stocks.

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Stock Forecasts

AI prediction results, not representative of any investment advice.

GDX View GDX chart on TradingView

Positive

Given the current performance and future potential of gold amidst political uncertainties, continuing to invest in gold-related assets appears promising. Moreover, the strong interest in gold mining companies suggests that investments in ETFs like GDX will likely benefit from the ongoing demand for gold.

SMH View SMH chart on TradingView

Negative

While semiconductor investments remain attractive, particularly in the context of AI, the volatility and speculative nature of these stocks could lead to fluctuations. The recent lack of recovery in certain semiconductor stocks may present risks for investors, suggesting a more cautious approach is warranted.

Why this top fund manager says the best investment this year is 'the hedge against political cycles'

Stock Forecasts

GDX View GDX chart on TradingView

SMH View SMH chart on TradingView

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