2016_ A Terrific Year For Small-Caps _ Seeking Alpha why to invest in gold

FG: we’ve argued for the last year or so that many businesses in cyclical sectors needed only slight improvements to top-line growth in order to take off. We saw a lot of that this year through the end of the third quarter.

More recently, we’ve seen how confidence in expanded growth is attracting more and more investors to equities as a whole, particularly those in cyclical sectors such as financials, industrials, consumer discretionary, energy, and materials.

CR: in large part, yes. However, valuations are starting to look a bit rich in many areas that even into october still looked reasonably priced to us. As is the case in every bull market, we’re becoming increasingly selective about what we buy.

We’ve moved from an environment where there were a lot of stocks that looked very attractively priced to one in which the number of compelling valuations has contracted.Why to invest in gold and silver

in addition to our usual cyclical tilt, we’re looking in some defensive areas such as healthcare.

It’s very much on a stock-by-stock basis, with a focus on individual companies that combine attractive valuations with strong fundamentals. That’s where we’ve historically located the most rewarding long-term opportunities.

To be sure, no one was talking about inflation over the last several years. So the fact that the market seems to be acting in a more historically familiar way should play a large role in keeping investors focused on prudently managed, conservatively capitalized companies that are improving their competitive positions and profitability.

FG: we’ve argued for the last year or so that many businesses in cyclical sectors needed only slight improvements to top-line growth in order to take off.Why to invest in gold and silver we saw a lot of that this year through the end of the third quarter.

More recently, we’ve seen how confidence in expanded growth is attracting more and more investors to equities as a whole, particularly those in cyclical sectors such as financials, industrials, consumer discretionary, energy, and materials.

CR: in large part, yes. However, valuations are starting to look a bit rich in many areas that even into october still looked reasonably priced to us. As is the case in every bull market, we’re becoming increasingly selective about what we buy.

We’ve moved from an environment where there were a lot of stocks that looked very attractively priced to one in which the number of compelling valuations has contracted. In addition to our usual cyclical tilt, we’re looking in some defensive areas such as healthcare.Why to invest in gold and silver

It’s very much on a stock-by-stock basis, with a focus on individual companies that combine attractive valuations with strong fundamentals. That’s where we’ve historically located the most rewarding long-term opportunities.

To be sure, no one was talking about inflation over the last several years. So the fact that the market seems to be acting in a more historically familiar way should play a large role in keeping investors focused on prudently managed, conservatively capitalized companies that are improving their competitive positions and profitability.