Uh we have seen this recent rotation and Tech really getting hit hard they have Stretch valuations Which takes me to our question of the Day on m live what sector if not Tech will lead especially when you have That reflation call ongoing Well the reflation call will really Support Many of the sectors which are more Cyclical in nature so We've seen the energy sector already do Much better on hopes and On hopes of higher prices and high Demand and actual higher prices We will also see financials improve as Well Uh in part due to yield curve steepening But also improved credit metrics Provisions were large last year and and Can be Worked off this year other cyclicals Industrials And then if you look at the stocks which Are the most affected by the pandemic Such as stocks around the travel Industry Those are really recovering and i think Have further room to recover As we open up and as we hear good news Like what we heard from the us earlier On Yeah and we also saw commodities Rallying because of all of the
Uh things that you've just told us but At the same time this gtv chart on the Bloomberg showing that Gold hasn't really performed that well Right i mean given the higher real Yields but I see in your notes that you're actually Finding it attractive why Well gold has tumbled quite a bit as we See from your chart from the highs back In august And gold reacts one to two rail rates so Now that rail rates are going up a Little bit that's putting pressure Uh on the price of gold a gold uh Does uh react as well to risk Perceptions and as Investors have been more risk seeking Gold has been less in favor and we've Seen a decline in etf holdings Uh and in interest to buy physical yet Gold has Another angle i think which is very Positive for it right now Is that as long as balance sheets of Central banks keep expanding Investors have to look for an Alternative to the dollar And um and to the euro and to currencies Of central banks to expanding their Monetary base And gold is one of those types of Currencies and finally when india and China start recovering and china is
Definitely In its v shape and india is starting to Recover the demand for Physical jewelry gold will start rising As well
