Summary:
Edmund Shing, an economist from BNP Paribas Wealth Management, predicts a recession in the United States in 2025 and advises investing in bonds, stocks, and commodities like copper and water.
Full Story:
Monaco Economic Board (MEB) recently hosted economist Edmund Shing at its Monaco Economic Conferences. Shing, the Director of Global Investment at BNP Paribas Wealth Management, shared insights and predictions with professionals and investors in attendance. Based on concrete data, Shing predicted a recession in the United States in 2025, citing lowered interest rates by the Federal Reserve as a measure to combat inflation. He explained that this decline in activity prompted companies to reduce costs, including layoffs, which caused a decrease in consumption. Shing advised keeping an eye on employment figures in the US. In the event of a recession, he recommended investing in corporate bonds. Additionally, Shing suggested shifting focus from currencies to stocks. While market records have been broken, he emphasized the importance of investing in fundamentally sound stocks. Shing also highlighted the potential short-term opportunities in markets that have previously underperformed, such as the UK, Japan, and China. Shing identified silver, platinum, copper, and water as good investment options. While silver and platinum carry some risks, he favored copper due to its crucial role in the energy transition and water due to increasing demand. However, he advised against investing in lithium, as it is already highly valued and future battery technologies may eliminate its necessity. On the other hand, Shing believes that gold remains a reliable safe haven investment over the medium and long term.
Source:
Monaco Tribune
