Individual Investors

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Investors are witnessing a decoupling of the relationship between gold’s fair value and US real yields, as concerns over the Ukraine war and high, persistent inflation prompt investors to put more emphasis on gold’s safe haven status. For over a decade, gold’s key price driver has been the real yield on 10-year US Treasuries, which defines the opportunity cost of holding the non-yielding asset. Other factors determining the gold price are its safe haven status during periods of political crisis and its value as a hedge against inflation. Gold is sensitive to rising interest rates, particularly US bond rates, which increase the opportunity cost of holding non-yielding bullion and put downward pressure on its price. But when investors focus on political or economic crises they will buy gold as a hedge, as they have been doing this year. ...
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Investors may be feeling a cautious sense of optimism as we enter 2021 with global vaccine rollouts. Last year, technology companies and commodities were investment winners, so what will 2021 hold for investment markets? There are three trends we see influencing ETF investments in 2021: the movement to value, thematic investing and short & leveraged investing. Download the complete paper here Movement to value As news of vaccines hit markets in late 2020, investors started to shift their approach away from a pure growth focus and towards value investments such as banks and industrials. ...