Ugo Montrucchio, Multi-Asset Fund Manager, gives his view on global markets from a multi-asset perspective:
The medium-term outlook for global equities remains quite bright. Valuations at the moment are fair, but we think that modest growth elsewhere in the world, and accommodative monetary conditions, should provide some support for earnings in the medium-term.
The outlook on emerging markets is much darker for both equities and fixed income. Emerging markets at the moment are going through a perfect storm, facing -
- A stronger dollar
- Deteriorating corporate balance sheets
- Much lower pricing power among their exporters, given the weakening demand coming from the developed world
The outlook for the fixed income market is in general overcast. We think that some level of volatility will feed through the system as we approach the first interest rate hike in the US. Equally we think that very benign monetary policy almost everywhere else in the world should be supportive for government bonds in the medium-term.
Company: Schroders Date added: 14-06-2016
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