JPMorgan Sees Investors Moving to Gold, Tech Amid Recession Risk
- ‘Long duration’ has limited downside in a mild recession
- Share of tech stocks has risen sharply in global equities
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Investors are likely to favor gold and technology stocks as those bets are expected to provide a buffer against the possibility of a US recession this year, according to strategists at JPMorgan Chase & Co.
The trade defined as “long duration” is expressed by being overweight on gold, growth stocks such as technology companies and currencies (short USD), strategists including Nikolaos Panigirtzoglou and Mika Inkinen wrote in a note, adding the bet is far from crowded in rates due to the highly inverted yield curve.