Market Flight To Gold Has Even Mark Cuban ‘Confused’
New York (Feb 13) Billionaire investor Mark Cuban says the recent turmoil in global markets that has sent stocks plummeting around the world has him baffled and moving money into gold.
The Shark Tank host revealed Thursday that he bought a good deal of call options on gold as the swings and constant volatility have driven him into areas that are likely to rise when the economy is in crisis. Cuban believes the fundamentals of the U.S. economy are strong, but admitted that with stocks, one can never be sure of what’s going to happen next, reports CNBC.
“I think people are so confused about this market,” Cuban told CNBC. “Nobody really understands what’s happening, including me. So, things that I thought made sense didn’t make sense and weren’t working. When traders don’t know what to do, they go where everybody is. And I thought that would be gold.”
Gold has risen roughly 17 percent since the beginning of the year and had its strongest day in two years Thursday. Cheap oil and deteriorating growth in China are battering global markets this year, the Dow Jones Industrial Average falling to two year lows at Thursday’s close, sending investors to safe havens like precious metals, according to The Wall Street Journal.