H&W in the Media
Yellen Fails to Entice Gold Bugs as ETPs Lose $1.5 Billion
The problem for precious metals is that the U.S. economy is clipping along fast enough for Fed Chair Yellen to say she still expects higher rates this year, even if they rise at a slower pace than some economists had expected. That outlook is driving investors to favor assets with better yield prospects, such as equities that are trading near record highs, especially as U.S. inflation stays low.
“There are enough signs that the U.S. is growing, and also the equity market will continue to attract money,” said Kevin Mahn, the Parsippany, New Jersey-based president who oversees $150 million at Hennion & Walsh Asset Management. “The rate hike is coming for sure, so unless something changes drastically, people don’t see the need to invest in gold.”
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