Gold is the second-best hedge for investors amid rising fiscal and geopolitical risks, according to Jefferies global head of equity strategy Christopher Wood, who said oil and energy stocks remain the preferred hedge as the economic and geopolitical pressure surrounding Iran continues to disrupt energy markets.
Wood said the latest strategy appears to be based on hopes that economic pressure will force Tehran back to the negotiating table, but said he would not bet on such an outcome. Tehran, he said, has every incentive to maintain the pressure until the US mid-term elections, which are now 11 weeks away.
