Gold alternatives in the post-Brexit world
By Kirsten Hastings, 26 Sep 16
With gold having been one of 2016’s most popular defensive strategies against persisting low returns and the struggle for income, Legal & General Investment Management’s multi-index fund range manager Justin Onuekwusi outlines four alternatives to gold for the post-Brexit world.
“As many anticipated, the Bank of England acted aggressively to address post-referendum market volatility and reduced interest rates in August. This benefitted interest rate-sensitive sectors such as hard currency emerging market debt (EM debt priced in US dollars) and global real estate securities.
“A further tailwind comes in the form of ‘lower for longer’ rates, which are likely to exacerbate the demand for yield and reduce the expected cost of debt for these asset classes.”
Tags: Brexit | Gold | Legal & General | Oil
