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.
“EM equities have always been one of the more risky asset classes in the multi-asset investment universe, and China’s growing debt remains a cause for concern. But as oil-related sectors gain appeal, so too do the prospects for many EMs linked to oil and mining companies.
“Of course, prospects for global emerging markets (GEMs) are also tied to changes in Fed policy. But while a Fed rate hike and Chinese hard landing are clear reasons to be cautious and even underweight EMs, investors may look to benefit from the changing outlook for oil-linked economies by reducing this underweight somewhat.”
Tags: Brexit | Gold | Legal & General | Oil
