--- title: "Schroders Investment: Remains optimistic about stocks and gold, currently maintains a negative outlook on the US dollar" type: "News" locale: "en" url: "https://longbridge.com/en/news/276816776.md" description: "Schroders Investment stated that it remains optimistic about stocks and gold while maintaining a negative outlook on the US dollar. The increase in geopolitical risks highlights the value of gold as a diversification tool. US economic data indicates robust consumption, but political interference may affect the credibility of the Federal Reserve. Corporate earnings are expected to drive investment returns, and the bond market reflects expectations regarding the Bank of England's policies. Schroders Investment is responding to the trend of a weakening US dollar by reducing its holdings in US Treasury bonds, increasing its holdings in Australian bonds, and re-establishing long positions in emerging market local currency bonds" datetime: "2026-02-25T02:20:20.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/276816776.md) - [en](https://longbridge.com/en/news/276816776.md) - [zh-HK](https://longbridge.com/zh-HK/news/276816776.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/276816776.md) | [繁體中文](https://longbridge.com/zh-HK/news/276816776.md) # Schroders Investment: Remains optimistic about stocks and gold, currently maintains a negative outlook on the US dollar According to the Zhitong Finance APP, the Schroders Multi-Asset Investment Team stated that geopolitical risks are unpredictable, but it must be understood that the rules-based order established since 1945 is being challenged. In this context, gold remains a practical diversification tool. As the events in Venezuela have driven a rebound in the commodity market, more profits from commodity positions are being locked in. Additionally, gold continues to be favored because it can provide valuable diversification benefits amid ongoing geopolitical uncertainties. The sustained demand from central banks continues to be a major driving factor. Schroders also mentioned that it maintains a negative view on the US dollar. The US economic data for January confirms earlier views that the US consumer market remains robust, and the labor market is in good condition. President Trump continues to be a focal point in the news, and from an economic perspective, the pressure he exerts on Federal Reserve Chairman Powell continues to raise mid-term concerns about the independence and credibility of the central bank. Although this has not yet had a tangible impact on short-term outcomes, ongoing political interference may weaken the credibility of the Federal Reserve in the long run. Given a more optimistic view on US economic growth compared to market consensus, it maintains a reduction in US Treasury holdings. Schroders stated that due to low risks of macroeconomic recession and controlled inflation, it is currently difficult to see catalysts that would trigger a bear market in stocks. Although stock valuation levels still face challenges, corporate earnings are expected to be the driving force behind investment returns this year. In terms of **bonds**, Schroders mentioned that the market has largely reflected expectations for UK bonds to turn "dovish" due to favorable inflation data from the Bank of England. Meanwhile, concerns about fiscal expansion, coupled with weakened demand from Dutch pension reforms, have also pressured German bonds. It has established long positions in Australian bonds by selling US Treasuries, as Australia's debt situation is better. It currently maintains a negative view on the **US dollar**, especially considering the risk that the Federal Reserve may turn "dovish" due to political factors. Therefore, it has re-established long positions in emerging market local currency bonds to profit from the trend of a weaker dollar and more disciplined fiscal policies, while continuing to hold long positions in euro against the dollar. In summary, it believes that cyclical risks remain controlled, but it is also aware that valuations are challenging and political risks are increasing. It is managing these risks by combining long positions in stocks (with diversified allocations in value stocks), gold, and short positions in US Treasuries and the dollar. The **overall stock market maintains a positive outlook on stocks**, mainly supported by strong corporate earnings momentum, especially in the US, as the balance of "low hiring, low layoffs" has stabilized the local labor market. US economic data also shows that consumption remains resilient. However, there are still risks regarding valuations, geopolitical issues, and whether the upward momentum of stocks outside of technology and artificial intelligence (AI) leaders can be sustained. In terms of **commodities**, it maintains a positive but cautious attitude towards energy, as low prices continue to exert supply pressure. This sector is viewed as a potential tool to hedge against ongoing geopolitical events, serving a similar role to gold. In terms of **currencies**, Schroders maintains a positive outlook on the euro, mainly benefiting from reduced market concerns about downside risks to eurozone economic growth. 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