Invest in Political Cycle Hedging for Better Returns than AI: Van Eck
A prominent exchange-traded fund and mutual fund manager believes that the most profitable trade of the year is not receiving as much attention as the artificial intelligence trade. VanEck CEO Jan van Eck emphasizes the importance of investing in gold as a hedge against political cycles, pointing out that it has quietly been the best performing asset this year. Gold has reached multiple record highs this year, with a 28% increase since the beginning of the year. Van Eck foresees continued foreign investments in gold bolstering the commodity and boosting gold miners, which have started to outperform this year.
In contrast, the AI trade continues to intrigue investors, with Van Eck noting the persistence of investors in this sector. His firm recently launched the VanEck Fabless Semiconductor ETF as a complement to its VanEck Semiconductor ETF, excluding companies with their own foundries. The new ETF’s top holdings include Nvidia, Broadcom, and Advanced Micro Devices. Van Eck highlights the efficiency of investing in companies that do not manufacture their own chips, such as Nvidia. The VanEck Fabless Semiconductor ETF has seen a slight increase since its launch on Aug. 28.
Overall, gold and AI investments offer distinct opportunities for investors, with gold proving to be a silent winner this year while AI continues to attract interest from investors.
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Emily Jensen, graduated from the London School of Economics and Political Science (LSE) in the UK in 2015 with a degree in Economics. She specializes in financial markets and international trade. After graduating, she worked as an analyst at an investment bank in London, where she developed expertise in global economic trends. She later transitioned into consulting, focusing on fintech ventures and providing insights into global economic developments. Emily is passionate about the intersection of finance and technology and aims to drive innovation in the financial sector.