Conviction in Gold and Bear on Wall Street: Market Sentiment

Market sentiment: Conviction on gold, bearish on Wall Street stocksGold is the asset generating the greatest consensus among analysts and peers investment strategies, as up to 40% of those surveyed believe it will be the most bullish in twelve months. The second asset that attracted the most agreement was Asian emerging equities with 20%, while European, US and Spanish equities and sovereign fixed income trailed somewhat behind.

The precious metal has been trading above $2,000 an ounce in this half of May and is up 10.60% so far this year. It is considered an asset that is inversely correlated with the dollar and a fall in the US currency is benefiting it, as are other factors such as gold purchases by China or the halting of rate hikes by the United States Federal Reserve. Done.

According to a report by China’s State Administration of Foreign Exchange, cited by a Chinese portal BaijiahaoLas Chinese gold reserves increased by 260,000 ounces between April and March, while China’s treasury debt holdings fell 859.4 billion dollars In January 2023, the decline for the sixth consecutive month. the asian giant has total gold reserves for more than 66.76 million ounces,

Another answer that generates the most consensus among analysts and colleagues investment strategies It is the stock market that will develop worst in the short term: Wall Street for 60% of those surveyed, the Spanish stock market for 20%, European equities for 10% and China for 10%.

As for which market will best develop in the short term, reactions are more divided. 30% believe it will be Japan and another 30% Europe, while the US accounts for 20%, Spain for 10% and Latin America for another 10%.

On Monday, the Nikkei 225 closed at its highest level in a year and a half as investors looked for stocks with strong returns, while a weaker yen also boosted investor confidence, potentially improving prices of exports from the Asian country. The Topix Headline Index is on the verge of reaching a three-decade high.

In Europe, the Euro STOXX 50 appreciated by 13.82% and far outpaced the S&P 500’s gain of 7.41% and the Dow Jones Ind. average of 0.46% achieved so far this year.

For a currency showing more strength over the long term, faith in the euro remains. 40% of those surveyed believe the EU currency will be the strongest in twelve months, 30% believe it will be the US dollar, 20% the Japanese yen and only 10% believe the Swiss Frank will do better than his fellow peers.

The euro appreciates by 2.10% against the dollar and 4.5% against the yen, although it depreciates by 1.9% against the pound sterling and 1% against the Swiss franc.

The latest sentiment survey for May was conducted among analysts and contributors investment strategies It aggregates opinions on short-term sentiment on the IBEX 35, S&P 500 and the US stock market in general and the Euro STOXX 50 and the European stock market in general. As far as the Ibex 35 is concerned, the majority with 40% of the responses indicate that the behavior will remain neutral this month, as will the US market with a similar response rate.

Experts consulted by this publication are somewhat more positive with the Euro STOXX 50, as 50% of analysts and associates investment strategies There is confidence that Old Continent equities will witness upside growth in the near term.