A. George Gero, senior vice president of RBC Wealth Management, today said he expects asset managers to move back into commodities, particularly precious metals, as a defensive strategy amid a broad reassessment of risk rising from the storm on Wall Street.
“What we are witnessing today is, in part, demand destruction (for some types of investments), and part reassessment of values that will be coming back after this situation sorts itself out,” Mr. Gero said in an interview at CME Group Inc.’s Global Financial Leadership conference in Naples, Fla. “Investors will move back into commodities, in particular precious metals, an area where they could look for profits when other values are down.”
Mr. Gero said the pullback in gold prices, as well as for other commodities such as copper, reflected hectic overall market conditions, but valuation based on fundamentals will return.
RBC Wealth Management, a unit of RBC Capital Markets, has about $130 billion in assets under management.
