JPMorgan predicts growing interest in gold and technology stocks among investors

RBC reports that JPMorgan expects an increase in investor interest in gold and shares of companies in the IT sector due to a possible recession in the US this year. Analysts note that gold is seen as a bet on monetary easing and as a defensive asset in case of a crisis, which causes increased demand for it in the context of the US banking crisis. In addition, JPMorgan points to interest in gold from institutional investors, as data on purchases by global central banks in the first quarter of 2023 show.

Shares of companies in the IT sector are also attracting increased interest from investors this year. Their portfolio share has risen significantly, approaching a close 2021 high, and their short share is the lowest of any sector, indicating a positive outlook for the industry.

JPMorgan notes that the strategy of buying gold and IT stocks, combined with shorting against the US dollar, has become popular in the market in recent months. This strategy provides limited downside potential for the portfolio in a mild US recession and high upside potential in the event of a deep economic downturn.