Investors have not seen the end of the lower for longer trade, according to Macquarie Asset Management head of research Dean Stewart, so selecting bonds and equities will require an even more cautious approach.
Mattioli Woods director Simon Gibson embraces the mantra of investing with conviction in these turbulent times of Trump, Brexit and stagnant global growth.
The new US president’s anti-trade agenda is a risk that is overblown in regards to China, according to Joshua Crabb, Old Mutual Global Investors’ Hong Kong-based head of Asian equities.
Chinese government bonds could be included in the global benchmark indices next year, according to Hayden Briscoe, Asia-Pacific head of fixed income at UBS Asset Management.
François Perrin, a portfolio manager at East Capital, says China’s environmental companies have outperformed their global peers and are insulated from the direction US policy takes.
Macro risks on the horizon have prompted EM portfolio adjustments, said Kenneth Akintewe, senior investment manager for Asia fixed income.
There are a number of parallels to be drawn between the current debt overhang in China and 1980’s Britain particularly in the north east says Robert Horrocks.
The bank has moved to an overweight on its China equities allocation from an underweight at the start of 2016 after selling India equities, said Tuan Huynh, chief investment officer and head of portfolio management for the wealth management division in Asia-Pacific.
With less than a week to go before one of the most contentious presidential contests concludes, some market participants are ignoring the noise, but many are fretting over shocks to equity markets and the potential fallout from protectionist trade policies.
China has reported annualised gross domestic product growth of 6.7% for the third quarter, in line with market expectations and the government’s own forecasts.
Rathbones asset allocation strategist Edward Smith has argued that investors should “pay close attention to the insidious creep of protectionism, as US politicians and elsewhere look to harness the disenfranchised.”
Underestimating long-term reform efforts are more likely to scupper growth prospects in Asia than the US election or the triggering of Article 50, says Sharat Shroff of Matthews Asia.
