In an exclusive interview with ET Now, Peter McGuire, Chief Strategist for Asia at XM.com, shared his views on global market trends, investment flows and asset allocation. He explains where the money will flow next, gold, AI, bonds, why India remains a compelling long-term investment story supported by infrastructure expansion and broad-based development, and why bonds may offer an alternative as uncertainty persists.
Bonds emerge as an alternative as investors reassess risk
“The other side is we have seen gold and silver come hemorrhaging from really silver is just dramatic,” McGuire, said, referring to the sharp correction in gold.
He also pointed to the appeal of earning a yield while waiting for better investment opportunities. Describing the option of remaining on the sidelines, he said, “just take a 5 per cent yield isn’t a bad choice.”
Gold and silver: Is another rally coming in 2027?
Precious metals have faced selling pressure after their earlier rally, prompting investors to reconsider whether the recent correction presents a buying opportunity or signals a longer period of weakness.
McGuire believes gold and silver could regain momentum, but he does not expect their strongest phase to arrive immediately. He suggested that the second quarter of 2027 could be an important period for the metals, particularly if the energy sector weakens.
“I think their best days are going to be probably Q2 27,” he said.
He also emphasised that the long-term investment case for precious metals remains intact, pointing to retail demand, central-bank purchases and silver’s industrial applications, including its use in electrical and technology-related industries.
AI trade: Still attractive, but volatility could continue
Artificial intelligence remains a major investment theme, but the recent correction in Asian technology stocks has raised questions about how investors should approach the sector.
In the interview, McGuire discussed the sharp moves in South Korean and Taiwanese markets, where AI-related stocks had reportedly corrected by around 20 per cent to 25 McGuire over the preceding week. He pointed to the volatility in major technology markets and companies involved in supplying the hardware needed for AI development.
Despite these swings, he said AI continues to be central to investor confidence.
“The AI story is certainly still very much the centerpiece as far as investor confidence,” McGuire said, while warning that the sector could face a difficult period.
He added that investors should assess companies on their growth prospects, earnings outlook and valuations rather than treating all AI-related stocks alike.
India and emerging markets: The long-term growth opportunity
India remains an important part of McGuire’s outlook, particularly because of the country’s infrastructure development and broader economic expansion.
“I still believe the India story is a great story,” he said, adding that the country’s appeal could remain significant “over the next decade or more” because of infrastructure investment and development across sectors.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)