Speaker 1: Good morning, and welcome to the Bloomberg day Break Asia podcast.
Speaker 1: I'm Doug Prisner. Here are the stories we're following today.
Speaker 2: I'm Charlie Pellett. Doug Prisoner is off this week. It
Speaker 2: was a mixed open for Asian markets this morning, as
Speaker 2: the region work through mixed US tech earnings. For more,
Speaker 2: we spoke with Adrian Zurker, co head of Global Asset
Speaker 2: Allocation at the UBS Global Wealth Management.
Speaker 3: You guys went overweight viewers equities across your portfolios.
Speaker 4: Tell us why.
Speaker 5: As you mentioned, actually the word looks very complex. We
Speaker 5: have election data coming in, inflation rates are going up.
Speaker 5: That doesn't really speak for high equity markets. But if
Speaker 5: you take a step back, I think in general we
Speaker 5: actually do see that the macroeconomic environment is are very solid.
Speaker 5: So there was talk about soft landing or hard landing.
Speaker 5: We think we actually be in no landing scenario where
Speaker 5: growth day is actually quite supported.
Speaker 4: Inflation is still coming off, maybe a bit slower than expected.
Speaker 5: The labor market is still solid, so that really points
Speaker 5: to solid earn's growth. We do expect double digits for
Speaker 5: this year, still very high single digit for next year.
Speaker 4: The market still looks attractive.
Speaker 5: We actually do think there's so much cash on the
Speaker 5: sideline that wants to go back to the market. They
Speaker 5: have missed the rally in the equity market, and we
Speaker 5: actually want to be positioned before the election because usually
Speaker 5: election makes a lot of uncertainties, but once the under
Speaker 5: inties is gone, it doesn't matter so much who actually
Speaker 5: gets elected.
Speaker 4: We actually do.
Speaker 5: Think that the market had sort of relief rally as
Speaker 5: well get to the end of the year, so a
Speaker 5: lot of positive supporting factors.
Speaker 6: There is that narrative though that if either candidate wins,
Speaker 6: you're going to see fiscal deficits. Rates are probably going
Speaker 6: to stay still elevated. At some point the Fed's going
Speaker 6: to be a bit restricted and how much they're going
Speaker 6: to cut. Does that impact your review on equities at all?
Speaker 4: Though?
Speaker 5: Well, two things on the election side, so we think
Speaker 5: it's very split at the.
Speaker 4: Moment fifty to fifty who could win.
Speaker 5: But we have a quite strong view that if Kamala
Speaker 5: Harris wins that it will be sort of a mixed
Speaker 5: garment with a basically red Senate. If Trump wins, it
Speaker 5: will be sort of a red sweep. So these are
Speaker 5: our key scenarios and I think both of these scenarios
Speaker 5: should be actually positive for equities. Yes, the FED might
Speaker 5: have to consider how much they can cut. We still
Speaker 5: have pencil in fifty basis points for the end of
Speaker 5: this year and one hundred basis points for next year.
Speaker 5: Maybe they will skip on one basis or one cut,
Speaker 5: but it will be based on strong numbers. And therefore
Speaker 5: I think the market looks through that. Eventually rates are
Speaker 5: still heading lower. It's not that the FED will start
Speaker 5: to talk about hiking interest rates.
Speaker 3: Yeah, and as you point out right, a lot of
Speaker 3: money still parked in money market assets. The one hundred
Speaker 3: and fifty basis points of cutstore doesn't sound like a
Speaker 3: no landing scenario. Why do we suspect the Fed styal
Speaker 3: is able to cut rates in a no landing scenario?
Speaker 3: I guess it's a question there. And why do equities
Speaker 3: do well in the absence of perhaps he's more easy
Speaker 3: coming out of the Fed.
Speaker 5: Well, Sha, don't forget that the FED had to overtighten,
Speaker 5: they lost control inflation, They overtight and we went above
Speaker 5: five percent. Neutral rate is probably somewhere and three to
Speaker 5: three and a half, and that's where they will have
Speaker 5: to guide it to. So just to keep MONTI policy
Speaker 5: stable and neutral and as it's not an easy mode
Speaker 5: actually they are going into so they're basically readjusting to
Speaker 5: the market environment. And I said at the end it
Speaker 5: all points down to ernest growth. Corporates are not earning
Speaker 5: real GDP growth. They actually are more in the nominal
Speaker 5: GDP world, and nominal GDP growth is declining, but it
Speaker 5: actually still remains.
Speaker 4: Very ropust to what we have seen in the last
Speaker 4: ten years. So there's a lot of aspects. We have
Speaker 4: structural drivers as AI.
Speaker 5: Yes, the market will look a bit more into the
Speaker 5: earnings do they really deliver and we can see it's
Speaker 5: actually also taking clear views. So if you are able
Speaker 5: to beat, you get rewarded. If not, you actually get
Speaker 5: also questioned. And basically market can trade lower, but it's
Speaker 5: still a two trade. It's not that you're surprising and
Speaker 5: nothing happens and you basically surprising negatively and the market
Speaker 5: is selling off. And I think so it still shows
Speaker 5: healthy environment.
Speaker 6: It seems like you're leaning more towards the equity side
Speaker 6: of things. What about when it comes to fixed income,
Speaker 6: do you think this market is cheap enough now that
Speaker 6: you can actually add some duration in your portfolio.
Speaker 5: So we actually started to add a bit. We were
Speaker 5: long the whole year. We actually cut basically our long
Speaker 5: duration positions roughly two three weeks before the first cut,
Speaker 5: and now we have seen rates backing up. We didn't
Speaker 5: expect that in this extent, but it definitely looks very interesting.
Speaker 5: You might want to wait for next week to see
Speaker 5: what's happening after the election, but it definitely starts to
Speaker 5: look like an interesting trade again.
Speaker 3: Yeah, well that takes us into income strategies, right, So
Speaker 3: what would be the preferred income strategies at this point
Speaker 3: in time. Is it in the equity market, is it
Speaker 3: in fixed income for example?
Speaker 5: It's probably a mix. So we still like dividend stocks.
Speaker 5: And I also have to say that we talked about
Speaker 5: Magnificent seven. So last year these were the companies that
Speaker 5: really had ernest growth. The rest of the four hundred
Speaker 5: and ninety three and average didn't have any earnest growth.
Speaker 4: It starts to be more balanced.
Speaker 5: So we see that the four hundred ninety three stocks,
Speaker 5: particularly the fourth quarter, will catch up a lot with
Speaker 5: the Magnificent seven. Darn's growth is coming off, so we
Speaker 5: think they will be broadening dividend stocks definitely look very interesting.
Speaker 5: But I would definitely go into the fixed income market
Speaker 5: as well.
Speaker 4: Definitely more interesting than cash.
Speaker 5: So we actually have maxed out our cash position to
Speaker 5: the lowest level.
Speaker 4: In our portfolios.
Speaker 5: Okay, but within fixed income, really still focus on quality
Speaker 5: evaluation in high yield is really unattractive and therefore be
Speaker 5: cautious there.
Speaker 3: How much does gold come up in your conversations?
Speaker 4: Yeah? Lot? Does it come up? Okay, up a lot?
Speaker 5: The question is I'm too late? Did I miss it?
Speaker 5: We have it in our portfolio. We went in, we
Speaker 5: cut our position by health probably also a bit too early,
Speaker 5: but we still let it run after say, it's a
Speaker 5: bit profy at this level. We still see upside fundamentally,
Speaker 5: but it was going up in very short period, maybe
Speaker 5: a bit too quick. There might be some profit taking
Speaker 5: here and there, but I would say fundamentally they're still upside.
Speaker 5: You have central banks that are trying to diversify their
Speaker 5: ethics reserves.
Speaker 4: You haven't seen very.
Speaker 5: Strong ETF flows, which we actually do expect will come in.
Speaker 5: We still expect the Fed to cut interest rates, and
Speaker 5: we still have a weeked all of you, which should
Speaker 5: be supported for stronger goal prices.
Speaker 6: So what is the best election hedge then?
Speaker 4: Is a goal?
Speaker 6: Is it yen? Given how cheap it is these days?
Speaker 6: What do you look at some something that you know?
Speaker 6: I know you're saying you can see through the noise
Speaker 6: and still in the US equities, But how are you
Speaker 6: actually protecting your portfolio as well?
Speaker 4: A very good point.
Speaker 5: I mean, we try to build very robus portfolios. So
Speaker 5: we have two key election hatches. One is actually despite
Speaker 5: the overweight equities, we have a few narratives in it
Speaker 5: that sort of flower out inside. The other key election
Speaker 5: hatch we have is just short a CNY versus US dollar.
Speaker 5: We actually do think the CNY could suffer further going
Speaker 5: into particular Trump presidency, and therefore I think that's a
Speaker 5: very interesting hetch because you get you're getting paid in
Speaker 5: news dollar interest, you're basically paying CNY interests, so you
Speaker 5: actually have a nice carry on top of that.
Speaker 4: If it doesn't, I just.
Speaker 3: Want to get your thoughts on is there still a
Speaker 3: cyclical trade to be made here, a tactical trade to
Speaker 3: be made in China? Do I need to wait for
Speaker 3: the elections?
Speaker 2: What's what's your overall view on that?
Speaker 5: Before me unpacked, Probably still some tactical upside, but I
Speaker 5: will probably wait for the election out common and we
Speaker 5: also see a test that down.
Speaker 4: A little bit.
Speaker 5: Everybody wants to know who they will face going forward,
Speaker 5: and then it could be actually a good still tactical trade.
Speaker 3: At least you mentioned any potential tactical rally in China
Speaker 3: might have to wait until the US elections are over.
Speaker 3: Do you think that Chinese policy makers will also need
Speaker 3: to wait who wins before they give us give us
Speaker 3: the goods.
Speaker 4: I think they want to wait.
Speaker 5: I mean the package and the rumors we have heard
Speaker 5: is probably in line what we also would expect, and
Speaker 5: I'm pretty sure the dates that has been set was
Speaker 5: related to the US election. They want to see how
Speaker 5: markets react who they will face as a president. Then
Speaker 5: they will announce basically stimulus package as well and probably
Speaker 5: readjust that. And I said, that's probably where you have potential.
Speaker 4: For a good sort of short term trade. If it's
Speaker 4: structure enough, we will see.
Speaker 5: I think the key issue in China currently is still
Speaker 5: you can throw a lot at this economy, and as said.
Speaker 4: Market is cheap.
Speaker 5: People in opposition that's probably driving some flows, but it's
Speaker 5: the real estate market and as long as you have
Speaker 5: real estate prices going down, it's very hard to convince
Speaker 5: the consumer and get is creating this positive feedback loop
Speaker 5: before the consumer to get back and spend. And I
Speaker 5: think that's if you look at the economy which is missed,
Speaker 5: and I think that's the biggest part where I'm still
Speaker 5: concerned about the structural challenges that China has.
Speaker 6: So do you think it's still more going to be
Speaker 6: domestically driven or do you think I look at you
Speaker 6: know what terriff risks for example, is that going to
Speaker 6: be a bigger overhang on this market.
Speaker 5: Well, if Trump gets elected and he follows up on
Speaker 5: his sixty percent tiis or whatever it is, that's definitely
Speaker 5: a major challenge that will impact GDP growth, definitely also
Speaker 5: impact the consumer spending. And so it's definitely much more
Speaker 5: domestically focused, and I think that's what they also have
Speaker 5: to do. The good thing is in China, it's a
Speaker 5: very big economy, so they have the flexibility also to
Speaker 5: engineer a domestic driven rebound. But as said, you have
Speaker 5: to basically stimulate the property market, which structure is probably
Speaker 5: not what you want to do to get sort of
Speaker 5: this positive feedback loop for the consumer.
Speaker 3: And you know, since if it is indeed the property
Speaker 3: market that will be you know, the ultimate acid test
Speaker 3: of you know, any potential bull market that might be
Speaker 3: at least still a year away. How do you think
Speaker 3: what is the appropriate exposure you think to Chinese equities
Speaker 3: or Chinese assets at that that do you think people
Speaker 3: should have? Well, we wait for that ship to eventually
Speaker 3: turn hopefully.
Speaker 5: So what we try to focus mainly really building solid
Speaker 5: global portfolios, and unfortunately China is a relatively small part
Speaker 5: out of that. We talk about maybe two percent exposure.
Speaker 5: If you want to have a bit more Asian focus
Speaker 5: for some.
Speaker 4: Cent exposure, yeah, if you want to have a.
Speaker 5: Bit more of an Asian focus for some of the clients,
Speaker 5: I want to have a bit of a home buas
Speaker 5: we still talk about six to seven percent exposure to China.
Speaker 1: Wow, that's not a lot.
Speaker 5: But also not forget I mean the compositions has changed,
Speaker 5: so India actually caught up with China largely.
Speaker 4: You have time on your Korea.
Speaker 5: I think if you take India, Korea and Time and together,
Speaker 5: it's almost forty five percent of the Asian extra pan market.
Speaker 5: So you see, Asia overall is growing. There's actually positive
Speaker 5: trends and so you have a much more balanced portfolio
Speaker 5: if you invest into Asia, then just basically be overly
Speaker 5: dependent on China.
Speaker 6: I was going to get your take. I mean, what
Speaker 6: is the playbook for this election? Can we do what
Speaker 6: we did back in twenty sixteen when Trump won? I
Speaker 6: mean at that time, inflation was way more controlled, rates
Speaker 6: for much lower and there was this rally that went
Speaker 6: on for about fifteen months after Trump won. I mean,
Speaker 6: can we subscribe those same sort of narratives this time around,
Speaker 6: because we've already seen aquen markets rally so much and
Speaker 6: things are not cheap anymore.
Speaker 4: That's a very good question.
Speaker 5: I think the environment is very different than we are
Speaker 5: much more advanced in the cycle. Well, the positive news
Speaker 5: is the Fed is cutting industrates are coming off, there
Speaker 5: will be more stimulus. I think the market at least
Speaker 5: initially will play sort of the playbook of twenty sixteen.
Speaker 5: But then once we actually go into next year and
Speaker 5: we start to see policies coming through, then we will
Speaker 5: have to see how solid the macroeconomic environment is, how
Speaker 5: much the economy can digest if it's overspent, how much
Speaker 5: it will influence inflation. So not forget in two and
Speaker 5: sixteen there was no inflation. They wanted to create inflation.
Speaker 5: Now we're sort of in a probably good environment and
Speaker 5: it's coming off.
Speaker 4: But if we're pushing too hard.
Speaker 5: Inflation might go up and I won't be something negative
Speaker 5: for the markets as well. So I think the market
Speaker 5: will played until the end of the year, until the
Speaker 5: inauguration the same way, but then afterwards might be a
Speaker 5: bit more nuanced on that part.
Speaker 3: Fancy, I guess if Harris takes it this time next week,
Speaker 3: what do you think market reaction will be the first
Speaker 3: forty eight hours? And if it's Trump, what do you
Speaker 3: think market reaction will be.
Speaker 5: It's not what we usually do, but I give you
Speaker 5: my indication is that I still think market will be
Speaker 5: positive because the Unswerta is a way we get more clarity,
Speaker 5: and I said it will be probably a red Senate,
Speaker 5: which also should dampen some of the policies that she
Speaker 5: wants to implement.
Speaker 6: Adre great to have you. Adrian's Rusher, their co head
Speaker 6: of Global asset Allocation at UBS.
Speaker 4: Global Wealth.
Speaker 2: Gold trading at a record extending a surge that has
Speaker 2: sent gold up over a third this year, joining US
Speaker 2: now George Milling Stanley, chief gold strategist at State Street
Speaker 2: Global Advisors. He is in our Hong Kong studio. So
Speaker 2: with gold at a record, what is it that got
Speaker 2: us here?
Speaker 7: I think there are really three things that got us
Speaker 7: up here. The first is that central banks have been
Speaker 7: very significant buyers of gold, now primarily central banks in
Speaker 7: the emerging markets, buying gold because they didn't have enough
Speaker 7: in their official reserves. And that's been a process that's
Speaker 7: been going on for fourteen straight years, not going to
Speaker 7: go away anytime soon. The second thing, we've seen a
Speaker 7: big revival in investment demand in China. I think Chinese
Speaker 7: investors responding to problems in the stock market related to
Speaker 7: real estate and turning to the traditional alternative, which has
Speaker 7: been gold for a very long period of time. And
Speaker 7: then for different reasons, we've seen a revival in Western
Speaker 7: world investment, Western Europe and North America, concerned about macroeconomic
Speaker 7: issues and also concerned about geopolitical issues. I think that
Speaker 7: combination is what to driven gold up to a whole
Speaker 7: succession of all time highs this year.
Speaker 2: Well, does the current price of gold then justify current valuations?
Speaker 7: I think it does. I mean, you know, if you
Speaker 7: think about it the kind of macroeconomic scenario that we're in,
Speaker 7: with inflation still being sticky, especially on the Fed's preferred measure,
Speaker 7: and with the Fed having started to cut interest rates
Speaker 7: and clearly embarking on a sustained period of rate cutting
Speaker 7: that's going to run through next year if everybody is
Speaker 7: to believe it to be believed that I think is
Speaker 7: likely to lead to dollar weakness and then consequently gold strength.
Speaker 7: And then the geopolitical background, a conflict in Europe with
Speaker 7: the potential to turn nuclear at the push of a button,
Speaker 7: and the Middle Eastern conflict having now spread way beyond
Speaker 7: Israel's borders where it was confined at the beginning, and
Speaker 7: now including open warfare with Iran and Lebanon, and the
Speaker 7: potential for that to get even worse. I think all
Speaker 7: of those things together historically have been very helpful for gold,
Speaker 7: and right now they're continuing to be very, very supportive,
Speaker 7: which is why we keep hitting this succession of all
Speaker 7: time highs.
Speaker 2: Well, let me throw in one more piece of uncertainty,
Speaker 2: and that is the American presidential election. Potentially what might
Speaker 2: that mean for the price of gold.
Speaker 7: I'm guessing that whoever becomes the president We're going to
Speaker 7: see continued spending, whether it's spending on domestic programs from
Speaker 7: the Democrats, or whether it's spending to finance, whether it's
Speaker 7: it's tax cuts. We're going to see bigger deficits whoever
Speaker 7: becomes the president, and that I think is going to
Speaker 7: lead to further dollar depreciation and quite possibly a renewal
Speaker 7: of inflation, which could be really very very damaging.
Speaker 2: At this point, is there a perhaps more bullish or
Speaker 2: bearish case depending on the outcome of the election.
Speaker 7: I think that as long as we avoid the dreaded trifecta,
Speaker 7: as long as we avoid one party getting the presidency,
Speaker 7: the House, and the Senate, which I think has always
Speaker 7: led to extremism in the past. I think that as
Speaker 7: long as we get the checks and balances that the
Speaker 7: US system is designed to incorporate, then I don't think
Speaker 7: that there is anything likely to be bearish for gold
Speaker 7: in there at all. My sense is that, you know,
Speaker 7: with likely increased spending, likely increased deficits, I've been hearing
Speaker 7: for twenty years that our deficit is unsustainable and we
Speaker 7: keep sustaining it somehow or other. I think that all
Speaker 7: of those things are going to lead to dollar depreciation,
Speaker 7: and that should lead in turn to a stronger goal price.
Speaker 2: What happens if we don't quickly know the election outcome,
Speaker 2: how might that play into the price of gold.
Speaker 7: I think all that would do, and I think is
Speaker 7: a very real possibility of that, given the way some
Speaker 7: of the candidates are talking, I think that all that
Speaker 7: would do is simply add to the general feeling of
Speaker 7: geopolitical uncertainty, the uncertainty about the conflict in Ukraine and
Speaker 7: the conflict in the Middle East. And if we have,
Speaker 7: let's hope it's not an armed conflict in the United States.
Speaker 7: But if we have a contentious election, which I think
Speaker 7: is a very likely outcome, I think that's simply going
Speaker 7: to be even further positive for gold. I don't see
Speaker 7: any negatives out there right now. It's hard to see
Speaker 7: where the headwinds might be coming from from the gold
Speaker 7: point of view.
Speaker 2: Well, certainly, we've got a lot ahead on the calendar.
Speaker 2: In addition to the presidential election, there's also a Federal
Speaker 2: Reserve meeting. What assumptions are you and your colleagues making
Speaker 2: about the Federal Reserve and the pace of further rate cuts.
Speaker 7: I think that you know Jerome Powell has said explicitly
Speaker 7: and many many times that he plans to be driven
Speaker 7: by the data, and that he's also trying not to
Speaker 7: be to put too much emphasis on any one month's
Speaker 7: particular set of economic statistics, because these are always open
Speaker 7: to revision. But if everything stays pretty much the same
Speaker 7: as we are right now, and he doesn't get any
Speaker 7: major surprises in the data, then it looks like the
Speaker 7: market consensus is right. The market consensus has now settled
Speaker 7: on two more twenty five basis point rate cuts, one
Speaker 7: at the November meeting, one at the December meeting, and
Speaker 7: then a sustained succession of small twenty five basis point
Speaker 7: rate cuts through the whole of twenty twenty five to
Speaker 7: bring FED funds rate down to somewhere around about the
Speaker 7: three percent level, probably a little bit higher than the
Speaker 7: sustainable normal rate, the neutral rate, if you like, as
Speaker 7: some of the economists want to call it, but your
Speaker 7: own power is indicated. If the data keep coming in
Speaker 7: the way that they are. Strong economy, some signs of
Speaker 7: a little wobble here and there in the labor market,
Speaker 7: but nothing really dramatic, then that will be the lightly outcome.
Speaker 4: Two more rate.
Speaker 7: Cuts this year, and then a succession of rate cuts
Speaker 7: next year, and then somewhere toward the end of twenty
Speaker 7: twenty five, the Fed will will take a little pause
Speaker 7: and have another macro view, if you like, the view
Speaker 7: from thirty five thousand feet, to see exactly where the
Speaker 7: general economy is and where all the other indicators that
Speaker 7: they're looking at, especially the labor market. But Jerome Power
Speaker 7: has made it very clear that he still wants to
Speaker 7: see an extended period of below trend growth, and he
Speaker 7: has seen nothing like that, and certainly in the last
Speaker 7: twelve months, and there are no real signs of anything
Speaker 7: like an extended period of below trend growth. That's what
Speaker 7: he wants to see, So he's not going to rush
Speaker 7: cutting interest rates at all.
Speaker 2: What's the view at State Street Global about where gold
Speaker 2: heads not only next year, but first of all by
Speaker 2: the end of this year and then into twenty twenty five.
Speaker 7: Look, I think that you know, it's difficult. As I said,
Speaker 7: it's difficult to see any major headwinds at the moment,
Speaker 7: and there are a number of tailwinds. The fact that
Speaker 7: inflation is still sticky that I think is usually helpful
Speaker 7: for gold. The fact that even in spite of inflation
Speaker 7: being sticky. The FED has decided that it is definitely
Speaker 7: time and possibly even they were a little late to
Speaker 7: the party, but it's definitely time for them to start
Speaker 7: cutting rates and embark on a sustained rate cutting a
Speaker 7: series of measures. I think that that is all very
Speaker 7: very positive. It has to be, and I see no
Speaker 7: real signs of any improvement in the geopolitics. Attempts to
Speaker 7: start peace stocks in either of the two armed conflicts
Speaker 7: that we have around the world seem to be doomed
Speaker 7: to failure. At the moment. Nobody seems to be making
Speaker 7: much in the way of progress, and I think that
Speaker 7: means we are going to have continued geopolitical uncertainty, continued
Speaker 7: economic uncertainty, and gold tends to thrive in the past.
Speaker 7: It's always thrived in an uncertain environment.
Speaker 2: Quick question about demand. You are talking to us from
Speaker 2: Hong Kong. China and India are the world's two top
Speaker 2: gold consumers. Is the demand story for the precious metal
Speaker 2: the same in both countries?
Speaker 7: No, I think there are very very different dynamics in
Speaker 7: each country. We have seen We've seen pretty good jewelry
Speaker 7: demand in China, but nothing outstanding. We've seen stellar investment demand,
Speaker 7: I think because the Chinese investor is frightened of his
Speaker 7: stock market right now. India is a very very different story.
Speaker 7: What we have in India is that demographics population growth
Speaker 7: is definitely on gold side, with strong population growth there
Speaker 7: unlike China, and the economic factors are also on gold side.
Speaker 7: The Indian economy has been growing. The IMF seems to
Speaker 7: believe from the most recent report, I think that India
Speaker 7: was really the one country that got top marks there.
Speaker 7: They're expecting seven percent economic growth this year and probably
Speaker 7: better than that next year. They're expecting the Indian economy
Speaker 7: to overtake the Chinese economy in size because the Chinese
Speaker 7: economy has turned into some decline with the growing of
Speaker 7: the population. Very much different dynamic from what's happening in India.
Speaker 7: And of course, you know, we are now well into
Speaker 7: the Indian wedding season, which we'll run through until next
Speaker 7: May or June, depending on where in India one lives,
Speaker 7: and that has always been very good for an uptick
Speaker 7: in gold jewelry demand there. But investment demand is also
Speaker 7: running strong in both countries, and I think it's very
Speaker 7: important to look at both of those dynamics. And finally,
Speaker 7: as China and India go, so go the rest of
Speaker 7: the emerging markets. You know, it's important not to ignore
Speaker 7: the Thaie Lands and the Koreas, and the Indonesias and
Speaker 7: the Vietnams, all of which are very very large consumers
Speaker 7: of gold for both jewelry and investment. And I think that,
Speaker 7: you know, things look pretty rosy out there right now.
Speaker 7: George milling Stanley, we thank you very much. He is
Speaker 7: Chief Global Strategist at State Street Global Advisors.
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