Dear investors, Please find below our latest edition of the Investment Committee Update as of 11.12.2019. In a nutshell: - Recent macro data have been helpful for investor sentiment, given the bottoming out of global manufacturing and the broad-based strength of the November US nonfarm payrolls report
- Crucially, despite these positive data surprises, the Fed seems determined to avoid tightening policy in response, as Chair Powell confirmed following this week’s meeting
- The UK general elections and the threat of new US tariffs on Chinese goods are the most important near-term risk events. Our baseline scenario is constructive on both fronts, although a substantial degree of uncertainty persists
- Asset allocation: We keep the emphasis on carry strategies to deliver the best risk-adjusted returns in a slow-growth, low-yield environment. Our asset allocation remains unchanged this month.
Best regards, Investment Committee |