A new economic outlook from Credit Suisse makes a compelling reason to add gold to your portfolio as quickly as possible. The outlook, released this week, has seen the Swiss bank cut its growth forecast to just 2.6% globally. Bank economists say the UK and eurozone are now in recession, with the American economy also on the brink. Credit Suisse’s growth forecast for the USA is hovering around 0% for 2022 and just 0.8% for 2023.
Despite the confirmation of recession biting around the world, the bank has cautioned that “the worst is yet to come” with tighter economic policy likely to make things very difficulty for the foreseeable future. Against this backdrop, stocks and bonds are likely to suffer – making gold a very attractive prospect for savvy investors looking to safeguard their portfolio and wealth.
Painting a bleak picture for the remaining months of the year, the report notes, “Higher rates combine with ongoing shocks to lead us to cut GDP forecasts. The euro area and the UK are in recession, China is in a growth recession, and the U.S. is flirting with recession.
“Crucially, the rising share of price categories above central bank inflation target levels shows inflation is broadening out from a limited group of supply shock related drivers to more general inflation. This broadening requires tighter policy and weaker economies because it increasingly reflects tight labour markets.”
Previous recessions have highlighted just how resilient gold is when other asset classes struggle. It notably outperformed stocks during the Great Depression of 2007-2009, increasing in value as GDP plunged by 27%.
With the Federal Reserve now publicly acknowledging that a ‘soft landing’ is no longer feasible because of its tighter monetary policy, we can expect gold prices to begin climbing. Secure your bullion before that happens to maximise your advantage. Don’t wait until the recession bites. Buy now.
