The economy is showing signs of slower growth, and now is the right time to switch to a defensive portfolio stance, this according to Frank Holmes, CEO of U.S. Global Investors.

"Global PMIs have turned negative...and historically, that means the economy's going to be weaker in exports in the next six months," Holmes told Kitco News.

Holmes noted that gold is still an important asset to add to a defensive portfolio.

Quoting Ray Dalio, founder and co-chairman of Bridgewater Associates, Holmes said investors are at "risk" if they don't own gold in their portfolio. On his own personal strategy, Holmes adheres to the "golden" rule of keeping at least 10% of his portfolio in gold.

He added that in today's environment short duration fixed income instruments, like short-term municipal bonds, are very attractive as defensive plays.

This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.

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