Carla Gottgens | Bloomberg | Getty ImagesAmericans are upbeat on gold and have soured on stocks — perhaps to their detriment.Twenty-six percent of Americans ranked gold as the best long-term investment in 2023, almost double the 15% who thought so in 2022, according to a recent Gallup poll.The share surpassed that of stocks: 18% of Americans ranked stocks as the top long-term holding, down from 24% last year, according to the survey.It was the first time since 2013 that their perception of stocks was below that of gold. Both ranked behind real estate.More from FA Playbook:Here’s a look at other stories impacting the financial advisor business.While Americans were asked to gauge sentiment about the long term, public perception is guided more by short-term swings in investment performance, said Gallup, which polled a random sample of 1,013 adults between April 3 and 25.And that recency bias can be dangerous for investors saving for a goal like retirement, which may be decades away.”As a long-term investment, [gold] is a very poor solution,” said Charlie Fitzgerald, a certified financial planner and principal of Moisand Fitzgerald Tamayo in Orlando, Florida.”It’s more like a speculation,” he added.Stocks beat gold over the long termStocks generally serve as the long-term growth engine of an investment portfolio, financial advisors said.The S&P 500 Index of stocks had a 10.43% average annual total return between 1970 and 2022, according to an analysis by Securian Asset Management. Gold had a 7.7% return over the same period. (After the U.S. gold standard ended in 1971, the price of gold was no longer fixed, making the early 1970s a good starting point for a price comparison.) The price of gold, which is often viewed as a safe haven, typically jumps during times of fear and economic malaise. For example, gold prices surged to multiyear highs in the early days of the Covid-19 pandemic, and spiked following Russia’s invasion of Ukraine.The SPDR Gold Shares ETF (GLD) — an exchange-traded fund that tracks gold prices — is up 8.6% so far in 2023. The S&P 500 is up 7.6%.Investors’ enthusiasm for gold comes amid recent turmoil in the banking sector and …
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[mwai_chat context=”Let’s have a discussion about this article:nnCarla Gottgens | Bloomberg | Getty ImagesAmericans are upbeat on gold and have soured on stocks — perhaps to their detriment.Twenty-six percent of Americans ranked gold as the best long-term investment in 2023, almost double the 15% who thought so in 2022, according to a recent Gallup poll.The share surpassed that of stocks: 18% of Americans ranked stocks as the top long-term holding, down from 24% last year, according to the survey.It was the first time since 2013 that their perception of stocks was below that of gold. Both ranked behind real estate.More from FA Playbook:Here’s a look at other stories impacting the financial advisor business.While Americans were asked to gauge sentiment about the long term, public perception is guided more by short-term swings in investment performance, said Gallup, which polled a random sample of 1,013 adults between April 3 and 25.And that recency bias can be dangerous for investors saving for a goal like retirement, which may be decades away.”As a long-term investment, [gold] is a very poor solution,” said Charlie Fitzgerald, a certified financial planner and principal of Moisand Fitzgerald Tamayo in Orlando, Florida.”It’s more like a speculation,” he added.Stocks beat gold over the long termStocks generally serve as the long-term growth engine of an investment portfolio, financial advisors said.The S&P 500 Index of stocks had a 10.43% average annual total return between 1970 and 2022, according to an analysis by Securian Asset Management. Gold had a 7.7% return over the same period. (After the U.S. gold standard ended in 1971, the price of gold was no longer fixed, making the early 1970s a good starting point for a price comparison.) The price of gold, which is often viewed as a safe haven, typically jumps during times of fear and economic malaise. For example, gold prices surged to multiyear highs in the early days of the Covid-19 pandemic, and spiked following Russia’s invasion of Ukraine.The SPDR Gold Shares ETF (GLD) — an exchange-traded fund that tracks gold prices — is up 8.6% so far in 2023. The S&P 500 is up 7.6%.Investors’ enthusiasm for gold comes amid recent turmoil in the banking sector and …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]
