- On March 7, 2017
“A record proportion of fund managers have said gold is undervalued and backed its safe haven qualities in the event of a rise in anti-trade policies,” writes Dave Baxter for FT Adviser.
Baxter is referring to a Bank of America Merrill Lynch survey of fund managers revealing that gold is viewed as the best hedge against protectionism by a third of investors, and a record 15% of the survey respondents consider gold undervalued.
Some 41% in the survey said the US dollar is the most crowded trade, and 28% believe the dollar is overvalued, the highest percentage since 2008. The second most crowded trade, the fund managers in the survey said, is government bonds.
The biggest “tail risk” investors face are the European elections and associated “disintegration risk” for the eurozone. The next two biggest risks, they said, are the prospects of a trade war and a crash in global bond markets.