Where and how to invest? Advice from an economist with a major banking group
Edmund Shing, Chief Investment Officer with the BNP Paribas Group, gave advice on investing your money © MEB / P.H. Sébastien Darrasse
London-based Edmund Shing predicts a US recession in 2025.
The Monaco Economic Board (MEB) was honoured to welcome economist Edmund Shing for one of its Monaco Economic Conferences. The conferences were launched two years ago and feature contributions by leading professionals.
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Based on concrete data, Edmund Shing, Global Investment Director of the BNP Paribas Wealth Management Group, offered advice and made a number of predictions for professionals and investors in attendance at the Yacht Club de Monaco.
A recession in the United States in 2025
The economist began by predicting a recession in 2025 in the United States as a result of the FED cutting its key interest rates to fight inflation. He explained that “This fall in activity has encouraged companies to cut their costs, notably by reducing their workforce, which has automatically led to a fall in consumption. Consumption accounts for 80% of growth in the US economy or 20% of global growth. My advice: keep an eye on the US employment curve!”
In the event of a recession, Edmund Shing advocated turning to bonds, which are loans taken out by companies via the markets.
Invest in equities rather than currencies
In addition, the Global Investment Director of the BNP Paribas banking group also advised not to invest in currencies as before, but to prefer equities. He explained that “Even if the markets have broken records, it’s still worth betting on equities as long as the fundamentals are good.”
Edmund Shing added that markets that had disappointed in recent years like the UK, Japan or even China could become good opportunities in the short term.
Raw materials to keep an eye on
Silver, platinum, copper and water are good investments in his opinion. Although the first two are a little riskier, he explained that he preferred to bet on copper, an essential metal in the energy transition, and water-related sectors as demand constantly grows.
Edmund Shing advised against investing in lithium, however, arguing that “it is already very high and that future battery technologies should be able to do without it.”
On the other hand, he believes gold is always a safe haven that never disappoints in the medium and long term.