Mathan Somasundaram

Despite short term stimulus reprieves, the medium to long term dynamics point to slowing global growth, weaker commodity prices and lower interest rates. The conflicting monetary and fiscal policy settings will continue to weigh on any global growth recovery. The risk of the US Fed move, the negative outlook for non-precious commodities and the stretched multiples after the recent bounce supports the view to reduce exposure and come back when the outlook gains more clarity. The gold sector remains the only commodity with positive macro, growth, value and safety aspects. (VIEW LINK)


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