Trouble Looming and Silver Might Just Be Your Best Bet — Expert

Despite investors’ renewed risk-on appetite, one trader says trouble may still be in the cards for financial markets.

“I’m on board for a recession but I’m looking for a mild recession,” Bob Iaccino, Chief Strategist at Path Trading Partners, told AGX Media in a video interview last week.

The Chicago-based trader thinks “trouble is looming” and said he would expect a recession to hit by the third or fourth quarter of 2020.

“We’re probably going to have a little grace period then people will move back into those safe-haven assets,” he added.

The safe-haven assets he alluded to were gold, silver, and even bitcoin.

“I think people are already trading bitcoin like a safe-haven asset. I’m a massive supporter of the space,” he said.

“It’s a non-correlating asset in that it doesn’t correlate to gold, to other safe havens, or to equities as of yet. That’s a massive positive. When you have something that performs completely differently, that’s the one thing that saves a portfolio.”

However, Iaccino said he also likes precious metals at the moment, especially silver.

“If gold continues to hold, silver will catch up to it so I’m much more bullish silver than I am gold.”

“Gold, to me, is becoming more and more a crisis hedge. I don’t think the recession we’re going into is a crisis. There may be a pop in gold at some point but I think it’s going to be less than we’ve seen in the past.”

As a final note, Iaccino shared his comments on asset-backed cryptocurrencies.

“If I’m completely honest, I think the jury is still out on how many cryptocurrencies will be usable,” he said.

“But I would certainly say that a precious metals-backed cryptocurrency has an easier to explain value proposition to the average investor.”