Asset Allocation

There are many compelling reasons why gold should outperform over the coming months.

The next five years will be challenging, and investors need to have their eyes wide open. Here's why and how to invest accordingly.

Swiss-based mega bank UBS, updated its Global Real Estate Bubble Index. The index, looks for cities that experience price climbs that disconnect from fundamentals. Topping the list this year is Toronto, and in fourth place is Vancouver. San Francisco is in 10th. Let’s take a look at the bubble factors they’re observing.

the time is now to diversify into gold. All markets cycle, and a down-cycle for stocks and an upcycle for precious metals is on the doorstep. Take some of your profits and buy some undervalued gold.

Some basic math shows that the coming electric car boom will create a super boom in copper demand. In 2016, EVs made up 1.6% of the total U.S. car market and it is expected that EVs will make up 4% by 2021 and - get this - by 2030, the adoption of EVs in the U.S. will be 34%. What does that mean for copper demand?

Right now most people seem to have been lulled into a false sense of security, and they truly believe that everything is going to be okay but every time before when the market has looked like this, a crash has always followed, and this time will be no exception.

The U.S. stock market has entered into the last stage, which I call the Super-Charged Tulip Mania. Not only are stock prices inflated well above anything we have ever seen before, but valuations are also reaching heights that are totally unsustainable. This next market crash will not resemble anything similar to what took place during the 2008-2009 U.S. banking and housing market collapse. When the markets cracked in 2008, EVERYTHING went down together. Instead this time around, as the markets tank the precious metals will surge to new highs.

Maybe now isn't the right time to jump in with 70% of your portfolio, but surely having 0% of your portfolio in the market is the wrong choice. Go ahead and put a little money in and set up some sort of automated investment so you're continuing to put money into the market regularly over time.

Anyone who is not prepared to take a contrarian view today, risks to be a real victim in the next 5-7 years.

Dr. Martin Murenbeeld, chief economist for Dundee Wealth Economics and one of the smartest gold minds around, outlines below his nine bullish arguments for gold.