Keith Balmer explains the reasons behind this year’s poor performance of Chinese equities and whether they should be totally removed from multi-asset portfolios.
As active multi-asset investors, we always keep a close watch on near-term, top-down developments, where we believe our tactical approach could help us stay ahead of markets. But we put equal importance on our bottom-up, stock selection, which can highlight exciting opportunities for longer-term sustainable investing.
Keith Balmer, Director, Multi-Asset Solutions, discusses inflation and highlights why now is the time to revisit your clients’ target outcomes.
Discover the state of play of the virus across emerging markets and how they look set to recover.
The first quarter of this year has seen a steady increase in inflation expectations – reflecting investors’ fears that inflation will continue to tick upwards.
In recent years, the UK has been structurally behind the curve, with its bias towards ‘old economy’ stocks leaving it arguably short on growth and technology.
After the brutal sell-off in the first quarter of 2020, equity markets embarked on a rally which was to confound even the most optimistic expectations.
We continue to have a favourable view on equities for 2021 due to our expectations for a vaccine-driven economic recovery and revitalised global corporate earnings. While earnings in the US were negative throughout 2020, momentum turned sharply positive in the third quarter as a record high percentage of S&P 500 companies reported earnings above expectations.