UBS: Give up on stocks buy gold
Duncan Richardson, News Editor
15 Jan 2016, 11:49 a.m.
2016 has already been an extremely volatile year for global stock indices. Trading on the Chinese stock market has been halted twice this year and FTSE 100 has retreated below 6,000 points. UBS is expecting equities to remain volatile throughout 2016 and have told their clients to reduce their equity exposure and stock up on gold bullion.
UBS expects the gold price to bottom in 2016 and then benefit from safe haven buying before starting a new bull market in 2017. From a technical prospective UBS believes equities have topped out and will now enter a secular bear market.
Volatility in the global markets is concerning credit analysts with many suggesting today’s economic outlook is similar to the conditions prior to the bankruptcy to Lehman Brothers in 2008.
Gold has performed strongly in 2016 and is up £40 per ounce and is currently trading at £755.55 per ounce. Silver is currently trading £9.63 per ounce, platinum £580.69 per ounce and palladium £340.51 per ounce.