INVESTMENT STRATEGY – PRIVATE BANKING, 4TH QUARTER 2015
The slowdown in emerging economies’ growth has been underway for several years now, tied closely to the downturn in the commodity complex.
AT A GLANCE
- The slowdown in emerging economies’ growth has been underway for several years now, tied closely to the downturn in the commodity complex.
- Investor fears of a collapse in global growth appear exaggerated as Chinese authorities still have important fiscal and monetary leeway to ensure a smooth transition towards a more domestic-driven economy.
- The US economy is exhibiting overall resilience despite a widening disparity between manufacturing and other sectors.
- Private demand is playing a key role in the Eurozone recovery, helping defy external growth fears.
- The moves in the oil price and US dollar have gone too far. Although still robust, developed equity market fundamentals could not shake off financial contagion from emerging markets. Better Chinese news flow will be required to justify greater risk-taking going forward.