Phuc Hien Yap, senior investment strategist at Standard Chartered Bank, sees strong investment potential in U.S. Treasuries due to the recent spike in yields and political factors.
He explains that current market prices suggest expectations of a Republican victory in the upcoming election, which is pushing the 10-year Treasury yield above 4.3%.
With yields currently nearing resistance levels, he believes this is an attractive time for investors to “average” and lock in higher returns, and expects yields to decline over time. There is.
The strategist also sees great potential for gold as part of a diversified portfolio and maintains an overweight view on the asset.
He explains that gold’s role as a hedge is particularly valuable if inflation rises. Geopolitical tensions have eased recently, but any renewed instability would further increase the value of gold as a protection asset.
Also read: Gold rates hit all-time highs amid US election uncertainty: What this means for Indian investors
However, Yap remains cautiously optimistic about U.S. stocks. He believes continued economic growth and solid earnings should support the stock market if the U.S. avoids a recession.
An eventual rate cut by the Fed could help maintain growth momentum, but bonds are currently a more attractive entry point given rising yields and the potential for future gains, he said. I’m looking at it.
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