Bloomberg Surveillance Investors Look to Safe Havens as Davos Kicks Off
9 snips
Jan 20, 2026 Michael Purves, a veteran markets strategist, discusses the rise of risk-off sentiment in European markets and highlights gold as a top hedge. Steve Laipply from BlackRock shares insights on record bond ETF inflows and strategies focusing on yield. Chief Economist Michael Darda explains the macro risks tied to Fed policies, while journalist Lisa Mateo provides intriguing headlines, including the challenges faced by MBAs and the innovative all-female trading desk at Banca Promos. This engaging mix of finance and news offers a deep dive into current market dynamics.
AI Snips
Chapters
Transcript
Episode notes
Japan's Bond Move Raises Global Rate Volatility
- Japan's surge in long-term yields is importing rate volatility into global bond markets and nudging term premia higher.
- Michael Purves warns this subtle pressure reinforces Treasury valuations even if it won't spike the 10-year to extreme levels.
Low U.S. Rate Volatility Masks Underlying Risks
- U.S. rate volatility has been unusually low due to offsetting changes in term premium amid sticky inflation and foreign yields.
- That tight range is breaking out now, but fundamentals will still determine the magnitude of moves.
Hedge Geopolitical Risk With Gold
- If you want to hedge geopolitical or idiosyncratic shocks, use long gold rather than VIX calls or S&P puts.
- Michael Purves recommends gold as a direct hedge because equity correlations are low and VIX fails to capture rotation risk.