Asset Allocation

The Fed is beginning to wake up to the fact that there is no easy escape from its artificial zero interest rate policy. The Fed will not be able to move very far off of the zero-bound range before the yield curve inverts and the U.S., and indeed the entire global economy, melts down. This means real yields will become more negative, the U.S. dollar will lose more of its purchasing power and economic instability will intensify over time—the perfect fundamental backdrop for rising gold prices.

In search of the best places to invest your money in the fourth quarter of 2015, I put together recommendations from a group of Barron's-ranked financial advisors [who are] deemed [to be] the top 1% in their industry. Here are their recommendations:

The bottoming process for the junior miners after a seven year decline may be ending in the next few months as they once again come back into favor for the following ten reasons.

Dividend Paying Stocks are Not a Safe Substitute for Bonds! Ever! DIVIDEND PAYING STOCKS ARE NOT A SAFE SUBSTITUTE FOR BONDS! EVER! EVER! Did I write that big enough? Maybe not. Let’s try again: DIVIDEND PAYING STOCKS ARE NOT A SAFE SUBSTITUTE FOR BONDS! EVER! EVER! Here's why.

While the correlation between bonds and stocks tends to increase during economic turmoil, gold usually becomes negatively correlated with other asset classes in such times. This means that the diversification benefits of gold are maintained and may even increase in during severe crises. Let me explain further and provide some caveats.

The bear market for gold is long in the tooth...and gold stocks are the most undervalued they have been in decades.

Martin Armstrong says gold touched rock bottom last week and will begin to rally sometime after October 1st, 2015 and reach $5,000+ an ounce in 2016.

Historically, the average P/E ratio of the S&P 500 is 16.64, and a reversion to said mean would represent a further decline in the index of 33%.

Is this the time to be buying gold mining stocks? Maybe, maybe not, but if you don't own any at all, this is a good time to start thinking about them. Here's why.

We are content to pay for house insurance for most of our lives yet very few of us have actually experienced a fire or a major disaster where we had to use the insurance. We are comfortable with paying the premiums every year in order to avoid a catastrophic loss. Well, owning gold is tantamount to owning an insurance policy on your investment portfolio.