Bill Holter’s Commentary
Credit Suisse on gold.
Time To Buy Gold As A Hedge Against “Extreme Financial Deleveraging” Credit Suisse Says
July 25, 2021
It’s been a while since Wall Street banks recommended anything to do with either gold or gold stocks, but in a surprising reversal, last week one of Wall Street’s biggest bulls Credit Suisse said that the time has come to use gold stocks as a risk off diversifier, while seeing material upside for the precious metal.
Here is why CS’ global equity strategist Andrew Garthwaite, believes that it is now time to buy gold:
First, according to Garthwaite, the valuation of gold stocks is abnormally cheap on both P/E – trading at a 25% discount to the broader market vs a 30% premium normally, and also cheap on a price-to-book basis relative to the market