While gold has not always lived up to the billing of being a negatively correlated asset – it is sometimes sold to pay for larger margin calls, for example – it is generally viewed as a safe asset for giving "ballast" to portfolios. With geopolitical and economic volatility in focus (conflict in the Gulf, the war in Ukraine, and persistent inflation), gold has reminded investors of its uses.

Growth can rise further
Chi Lo, senior market strategist, Asia Pacific, who remains positive on emerging market equities and gold, despite volatility arising from the Middle East conflict.

In developed markets, Lombard Odier retains an overweight position on Japan and an underweight position on the UK. Haefele keeps an attractive rating on US equites, with a year-end S&P target of 7,500. On a sector basis, Haefele favours consumer discretionary, financials, healthcare, industrials, and utilities. He recommends that investors hold a diversified exposure to the artificial intelligence theme across sectors and geographies.

In fixed income, Bindelli keeps his exposure neutral overall and continues to favour emerging market bonds over developed markets. He expects bonds to deliver improved performance in the coming months, even if still lower than equities. He also likes UK gilts, like other wealth managers, and German Bunds and sees scope for improved gains in Swiss bonds. Haefele sees opportunity in short- and medium-duration quality bonds.

It is sometimes argued that gold does not generate a yield, which is precisely why it counts as a form of money. The picture, as argued by firms such as Monetary Metals, is more complicated. The firm has been developing the gold yield marketplace™, not for buying and selling gold but to connect gold investors seeking a yield with corporations and institutions who need gold capital and can pay in gold for it. (See an interview here.)