Part 7/9:
In a nuanced discussion about gold, Fleckenstein noted the lack of enthusiasm for gold investments within North America, especially as central banks in Asia continue to ramp up their purchases. He posited that gold mining companies are currently undervalued given the rising gold prices, primarily due to waning investor interest in precious metals.
The podcast concluded with Fleckenstein’s strong belief that traditional mixed portfolios (such as the 60/40 bond-equity strategy) may soon be rendered ineffective in light of shifting economic realities. He recommended a more adaptive approach considering the relative challenges posed by the bond market, suggesting a need for diversification that may include more stocks and alternative assets.