Jittery investors wondering where to stash their cash got some advice today from Mayor Bloomberg: stick with stocks.
First on TV and then on radio, the mayor suggested stocks are undervalued, while gold and bonds have become too dear.
“If you had to bet 10 cents — I wouldn’t bet more than that — you’ve got to believe that US government bonds have been bought at high prices and gold is too high a price and stocks are too low. Why? Because it’s just been going in that direction for a while,” the mayor said on CBS-TV’s “The Early Show.”
An hour later, on his weekly WOR radio program, Bloomberg was more emphatic.
“The economy isn’t as bad as the stock market thinks. Bonds probably have been overbought. It’s pretty hard to argue it makes sense to buy a bond that’s giving you one half of one percent interest rate. Gold? If you ever saw a case of something that’s gone virtually vertical — nothing goes vertical in history…” he said.
Gold was continuing to climb in morning trading, reaching close to $1,850 an ounce. Stocks were mixed.