Investors will have to be much more nimble with decisions due to political risks ahead, but Brexit hasn’t clouded the outlook, said Daniel Murray, chief economist and head of research of EFGAM’s wealth management business.
At the FSA Growth Forum in Hong Kong, Capital Group, Investec and M&G weighed in on what a Donald Trump presidency would mean to the markets.
Oil prices and Russia’s fiscal health are highly correlated, and if prices finally stabilise, the market should benefit, according to Egor Kiselev, who manages two Parvest Russia funds.
The MSCI Russia Index has been positive for 18 months while Russia-focused mutual funds have stayed negative.
Banks do derive benefits from negative interest rates, which are a net positive for the economy, said José Viñals director of monetary and capital markets at the IMF.
The biggest portfolio risk this year is not yet priced into the market, said Kevin Liem, chief investment officer at wealth management firm TTG in Hong Kong.
“If you buy investment grade debt, it looks like the Fed will be in your corner,” said David Buckle, head of quantitative research at Fidelity.
Advanced economies have become the net receiver of market shocks while China and other emerging markets have turned into the sources, according to an IMF working paper.
Fund managers weigh in after ECB president Mario Draghi jolted markets with his bold monetary policy moves.
Chinese authorities face tough choices, but a full blown financial crisis is unlikely, said Alex Wolf, emerging markets economist for Standard Life Investments.
Rising volatility means investors are losing faith in central bank efforts to lay the foundation for economic recovery, according to Ben Leyland, lead manager of JOHCM Global Opportunities Fund.
The firm said it is “increasingly clear” it is likely the RMB will fall, bad debts will rise and A-shares markets will drop.
