This chart book presents commentary and analysis of historical currency momentum, valuation, and fundamentals in nine base currencies: Australian dollar, British pound, Canadian dollar, euro, Japanese yen, New Zealand dollar, Singapore dollar, Swiss franc, and US dollar.
No. While we do not expect the trade war to end after President Trump and President Xi meet this week at the G20 in Japan, we have not changed our view that investors should consider dedicated allocations to China broadly and A-shares in particular.
Yes, but only if you can tolerate the volatility.
While we have advised a gradual approach to investing in China, today we believe that investors should take a systematic and comprehensive approach, overweighting Chinese assets relative to their index weights. Looking past the uncertainty and negativity, investors will find a large investment opportunity set, a robust universe of public and private managers, and appealing public equity valuations.
Although we are more cautious heading into 2019 than we were 12 months ago, we still think a roughly neutral allocation to risk assets is the right approach.
In this report, we briefly highlight five key post-GFC developments and discuss how investors might adapt their portfolios to these changes.
No, MSCI index inclusion will not trigger a bull market in Chinese A-shares. Given the very modest initial weights and the lack of clarity on future increases, we doubt that index-driven flows will drive share prices meaningfully higher.
This chart book presents commentary and analysis of historical currency momentum, valuation, and fundamentals in five key base currencies.
Though the risk from rising rates is potentially higher in Australia than elsewhere given household debt levels and the state of the housing market, we judge the risks and outlook as balanced and advise investors to remain neutral on equities and risk.
The risks from rising rates are potentially higher in New Zealand than elsewhere given the overvaluation of equities and the housing market. We advise investors to underweight NZ equities, fixed income in general, and the NZ dollar.