Chris Wood of Jefferies has made bold predictions on global markets. He said gold could reach $10000 if the US suppresses Treasury yields, which would weaken the dollar and monetise Indian household wealth. He warned of massive capital destruction in US hyperscaler investments in AI and semiconductors, questioning their returns.
Wood described India’s small and mid-cap stocks as dynamic but expensive. He noted foreign selling last year was due to reallocations to Korea and Taiwan, not India-specific issues. He cautioned that US Treasury yields crossing 4.5% is a warning and 5% is a red alert for equities.
He advised avoiding G7 government bonds and preferring local-currency emerging-market debt. He expects suppressed yields to trigger long-term dollar weakness, benefiting emerging markets and gold.
On oil, he said China’s purchases are a swing factor. Elevated prices amid West Asia conflict make energy a hedge. He believes Iran will retain leverage until US midterms. He also warned that sanctions on Russian crude could hurt India given its reliance.
Wood concluded that AI investment sustainability is now the most critical macro issue, while gold and energy remain safe hedges against risks.
