1/5. Li Xunlei, Chief Economist at Zhongtai Securities, predicts that among all types of #assets, #bonds and #gold are more likely to continue their price hikes this year:
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2/5. For bonds, it's because the yield rate of bonds will inevitably decline as the sluggish economic growth pares down investment returns amid this long-term global #recession.
3/5. #China's Government Work Report stressed to "promote steady reduction of interest rates", which indicates further interest rate cuts in the second half of 2020. The prospering bond market in the US and Europe have also added to the possibilities of a boom of bonds in China.
4/5. For gold, it's because its investment value and nature as a safe haven asset would be ever more pronounced amid a global recession where governments continue to flood the markets with liquidity.
5/5. Besides, many countries have long repressed the gold price so that they can have the cash printers at full throttle.
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