As events in Europe have roiled the U.S. markets over the last month, one usually precious element of the market talk has been missing: gold.
“Whatever happened to gold?” asked an audience member at the Lipper Investment Series 2012 Outlook on Tuesday in New York. The panel talk included speakers from Merrill Lynch, Vanguard, Fidelity, T. Rowe Price and Columbia Management Investment Advisers.
Not one of them was bullish on bullion.
“We don’t see it as a long-term asset class,” responded Lisa Shalett, chief investment officer of Merrill Lynch Global Wealth Management. “It’s a hedge in your portfolio. Don’t get too excited about it. The minute you do, it will go the other way.”
Shalett advised investors to put no more than 5% to 7% of their assets into gold.
Colin Moore, CIO with Columbia, added that investors usually execute gold trades poorly, confusing it with the asset class of commodities. Prior to joining Columbia Management Group, Moore was CIO of global and international value equities and associate director of research at Putnam Investments.