Scott Minerd, who warned clients in a recent note that the market is "on a collision course with disaster, but that we should be fine for 2018. The looming debt crisis, Fed inflation concerns and quite frankly banking sectors concerns on interest increases is predicted to occur later this year or 2019.
Corporate debt currently stands at a record $8.83 trillion, according to Securities Industry and Financial Markets Association data. Higher rates will make it harder for companies to refinance and bankruptcy will be eminent.
"Once short-term rates hit 3 percent, that will be enough to drive up defaults and cause a recession, he added."
But as always, this is the warning on the wall. Look to gold as insurance. Protect some gains. Protect your assets with real, physical assets. The worst that can happen is that you remain flat, you miss this volatile ride. Is volatility your speciality as an investor? Go for some risk management.