Investment Strategy February 2017

Investment strategy - 2/16/2017

It is unlikely to be all about Trump in the coming years, and it’s Xi Jingping, the Chinese president, who we should be listening to and watching.

For it is likely that China and her policies could ultimately overshadow Trump and significantly impact global growth. As we celebrate the Chinese New Year, we can perhaps rely on the Chinese Rooster to wake-up the global economy as its planned economy and commodity consumption drive growth, not just in China, but across the world.

As many equity markets record new highs and the Dow climbs above the magic 20,000 level, it is all too easy to get carried away with optimism. Yet it’s at these times that we need to refocus, and continually make sure we are not being led astray by numerology or complacency.

Key messages are:

  • We are keeping our overweight in equities
  • Economic growth perspectives are encouraging overall
  • Investors' perception of risk is low judging by volatility expectations
  • Donald Trump is determined to act


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