Nancy Tengler in CNBC

Here’s why hedge fund manager Ray Dalio’s gold case may be wrong

One commodity has proven a golden opportunity in the past week.

The price of gold has moved 1% higher against a slight drop for the S&P 500 as investors favored a safety hedge following the stock market’s record run.

Gold prices moved even higher Wednesday after billionaire hedge fund manager Ray Dalio picked the commodity as one of his top investments. In a LinkedIn post, he said the asset could act as a defensive play as global markets undergo a “paradigm shift.”

Nancy Tengler, chief investment strategist at Butcher Joseph Asset Management, is loathe to disagree with Dalio, but she isn’t buying that argument in favor of gold.

“I do see it more as a trading opportunity, so a short-term place to place funds but not a paradigm shift as [Dalio] tends to describe as a 10-year trend,” Tengler said Wednesday on CNBC’s “Trading Nation. ”

“We would advise clients to put some money in at current levels as a protection against slowing global growth, potentially a Fed that may not be as easy as some expect, and some market volatility, but I don’t see this as a long-term trade at this level.”

Read more here: https://www.cnbc.com/2019/07/18/heres-why-hedge-fund-manager-ray-dalios-gold-case-may-be-wrong.html

© Zito Partners 2011-2019. All rights reserved.