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2025-10-30 22:49:54
[Inflation Risks Will Keep Gold Attractive and Lead to Weaker Bonds] As Federal Reserve Chairman Jerome Powell clearly pointed out yesterday, inflation risks remain, which could be a reason to sell bonds and buy gold. Jake Schurmeier of Harbor Capital stated, "You still want to hold gold as a diversification tool…because inflation risks are still higher than they have been for many years." He added, "Inflation is the worst thing for bonds." Potential inflationary factors he cited include "questions about the Fed's credibility and excessive cyclical fiscal stimulus." Schurmeier is overweight in equities and has increased his holdings in small-cap stocks, anticipating an improvement in economic activity. Schurmeier said that at the same time, a weaker dollar makes non-US assets more attractive.
