Bringing you live news and features since 2006 

Eurozone swings sentiment on gold and government bonds

RELATED TOPICS​

At a recent Schroders Investment Conference in London, 120 intermediary clients who attended from Europe, the Middle East and Latin America, were asked their views on the Eurozone as well as their outlook for several asset classes.

The results reveal that 81% believe that the Euro will not collapse despite current problems in the Eurozone. However, significant concerns towards the region exist with 59% considering European structural problems as the most pressing global macroeconomic issue today followed by US structural problems (22%). Furthermore, there is a strong consensus (62%) that the best path for Europe is to put Greece into a “managed” default and recapitalise the banks at a national level.
 
In light of recent market volatility, the survey reveals a positive outlook towards certain government bonds and gold. Almost half believe that German, UK and US bonds will yield between 2-4% in five years’ time and 31% believe the same bonds will yield 4-6%. Attitudes towards gold are also optimistic with almost 40% believing that the gold price will reach at least $2,000 per ounce in two years.
 
Peter Beckett, Head of International Marketing, Schroders, says: “The ongoing uncertainty around Greece and Italy as well as the fear of further contagion is causing markets to be driven by daily or hourly swings between fear and euphoria that are entirely unrelated to traditional company fundamentals. It is therefore not surprising that investors have strong views on how to resolve the Eurozone problems and are optimistic towards ‘safe haven’ asset classes such as gold and government bonds from stronger countries. Gold in particular offers important diversification as well as protection against uncertainty, inflation and concerns over the value of the US Dollar, Sterling and Euro, which are all prevalent in current markets.” 

Latest News

Saving and investing app, Moneybox, has doubled the number of ETFs available on the platform, in the light of ‘growing..
Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..
Confidence in the continuing strength of bitcoin and Ethereum is driving wider interest in altcoins and other digital assets, according..

Related Articles

Graham MacKenzie, Toronto Stock Exchange
The evolution of ETFs has been a multi-decade experience for Toronto Stock Exchange says Graham MacKenzie, managing director, Exchange Traded...
Frank Koudelka, State Street Global Services
ETF data provider and ETF Express data partner, Trackinsight, has published its Global ETF Survey 2024 Report: ‘50+ Charts on...
Cryptocurrencies
Matteo Greco, Research Analyst at Fineqia International writes that bitcoin (BTC) ended the week at approximately USD52,150, showing a notable...
US Distribution Awards trophies
The winners of the first US ETF Distribution Awards at the Exchange conference, hosted by ETF Express and sponsored by...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by