Russ Koesterich, who helps manage the $41 billion BlackRock Global Allocation Fund
Interesting comments from Russ Koesterich on how political optimism is probably too high and political risks are underpriced.
"That hiding political risk is not reflected in markets," Koesterich told Bloomberg. "People are not that nervous, and there are things that could go wrong, particularly when you think about all of the political risks. That adds to the argument for having gold in a portfolio."
"Some of this rally has been based on the fact that investors expect some stimulus from Washington in the form of tax cuts and potentially fiscal stimulus as well," Koesterich said. "What happens if it doesn't come?" While "there will be some stimulus, the timing, the form and the magnitude are still very much uncertain."
