Stock markets are following the expected seasonal pattern, experiencing a correction between Spring and Autumn and a rally since the end of October. The US equity market has exited correction territory, driven by falling bond yields and a perceived peak in Fed rates. Investors have regained their risk appetite
and equities are leading in strength, particularly World Quality Equities. Gold Bullion is also benefitting from a decline in bond yields and a weakened dollar.
We remain in risk-on mode however advise caution as the softening US labour market raises concerns about a potential recession. Managing risk is crucial, with Gold bullion emerging as a valuable hedge amid market volatility and economic uncertainty. The risk of a looming recession coupled with a dovish pivot by the Fed sets the stage for a potential bull market in gold. Good luck navigating these dynamic market conditions.
