Protect yourself with valuables

Systemic risks remain on the equity sector

WHAT HAPPENS
Numerous critical factors weigh on the first months of 2023 and require caution with respect to risky assets. First, there is the possibility that the recession will start to bite as early as the first half of 2023, with negative impacts on earnings per share.
Second, the decline in US prices concentrated in a few months from the double-digit levels of 2022 is neither an orderly nor a painless process. However, EU inflation remains high and shows only slight signs of slowing down.
Then there is the recovery of economic activity in China after three years of lockdown, which brings millions of consumers and businesses back to the market with expectations of new pressures, especially on energy and transport prices.

WHAT TO EXPECT
Compared to the uncertainty linked to the equity markets, precious metals, led by gold, seem to enjoy the best conditions to prolong the bullish phase consolidated in the last quarter of 2022.
In fact, gold, silver and platinum will be able to benefit from both foreseeable scenarios for 2023: if inflation contracts further, and interest rates drop, precious metals will benefit due to the historical negative correlation with the rates themselves. If, on the other hand, a recessionary scenario were to develop, perhaps aggravated by military and pandemic upsurges, precious metals would in any case find further stimulus factors.