JPMorgan predicts investment shift towards gold and tech stocks amidst economic uncertainty

Investing.com – believes that investors will increasingly prefer gold and technology stocks. Investing in these assets is expected to provide protection against a possible US recession this year. writes RBC.

Analysts say the US banking crisis has increased demand for , as it is seen both as a bet on monetary easing and as a defensive asset in case a “catastrophic scenario” materializes.

JPMorgan also drew attention to the interest in gold from institutional investors. Thus, in the first three months of 2023, world central banks purchased 228 tons of gold. This is the highest figure for the first quarter since at least 2000, notes CNBC.

As for the shares of the IT sector, their share in portfolios has grown significantly this year, approaching the maximum of 2021. In addition, tech stocks have the lowest share of short positions among all sectors, which means that the market as a whole is optimistic about the prospects for the industry.

JPMorgan noted that the strategy of buying gold and growth stocks, combined with shorting against the US dollar, seems to have gained wide popularity in the market in recent months. The bank explained that in this case, the portfolio has limited downside potential in the event of a mild recession in the US and, on the contrary, a large upside potential in a deep economic downturn.

Follow our news on social networks: Telegram, “In contact with” and “Odnoklassniki”.

Text prepared by Timur Aliev