The Globe and Mail reports in its Tuesday, Sept. 23, edition that CIBC economist Benjamin Tal expects the Fed and the Bank of Canada to continue to cut rates into next year, with the Fed eventually dropping its rate by a total of 100 basis points. The Globe's regular guest columnist Gordon Pape writes that cuts of that magnitude would have a significant positive impact on short-term bond prices. However, only 3 per cent of respondents to a poll conducted by Mr. Pape felt bonds would be the top performer as the year winds down. Bitcoin drew a meagre 3 per cent support, which is surprising given that it has gained about 25 per cent so far this year and recently touched a high of $124,457.12 (U.S.). Despite that strong performance, there is a lot of skepticism toward cryptocurrencies. Gold meets with less resistance. The price of gold is up about 43 per cent year-to-date. Among Mr. Pape's poll respondents, 38 per cent felt it would be the best-performing asset between now and year-end.
That is a strong show of confidence, but some of the world's smartest investors are not convinced. Warren Buffett, for one, is not a fan of the metal.
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