Gold offers an excellent opportunity to hedge, which means that the metal will show significant growth, says Russ Koesterich of BlackRock.
With the fall in bond yields, investors rushed to the precious metals, and gold has added 28% since the beginning of the year.
“We are in the middle of sluggish economy and increased volatility. In such circumstances it is necessary a insurance for the portfolio, which is ideal for gold, “- he said.
Since the “yellow metal” does not imply yields, investors will suffer considerably if real interest rates start to rise. Now, however, at low or negative rates, gold remains the best option for hedging, he said.
In addition, Head of portfolio strategy BlackRock Global Allocation Fund notes that he prefers shares over bonds.