Where to invest to maximise absolute returns

Stock markets may have soared in the last days of the old year, but private investors should be wary. Paul Van Eeden explains why you should hold gold rather than follow the money managers into stocks.

Near the end of 2006, the US dollar rebounded on foreign exchange markets and as a consequence the US dollar gold price fell. The dollar appreciated 2% against the average of the euro, pound, yen and Swiss franc while gold fell 4.7%. This is nothing but the natural volatility that we should expect from public markets as investors try to be forward-looking and react to new data. While traders try to anticipate volatility and profit from it, I try to ignore it and keep my eye on the bigger picture.

Look out for a gold buying opportunity

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.