eToro: Gold is Replacing Traditional Stable Low-Risk Assets as a Portfolio Hedge Tool

Odaily News eToro analyst Lale Akoner pointed out that as investors seek new ways to hedge equity risks, gold is increasingly replacing traditional stable low-risk assets—long-term government bonds—as an allocation choice in portfolios. "Historically, duration exposure has helped cushion the decline of risk assets. However, the recent phenomenon of simultaneous selling in the stock market and long-term bonds has weakened investors' trust in bonds as a reliable hedge at critical moments." She stated that investors are therefore replacing bond exposure with gold in their portfolios, indicating that "a broader reflection on portfolio risk management" is underway. (Jin10)