Our Global Investment Strategy service recently published their Strategy Outlook for Q3 2015.
The quarterly report highlights the following points:
- Global growth should pick up in the second half of the year, but will remain too low to counteract the persistent shortfall in demand facing most major economies.
- For now, contagion to the rest of Europe from the Greek crisis is likely to be contained. The longer-term viability of the common currency, however, is fraught with doubt.
- Investors should remain modestly overweight global equities, stay neutral bonds and spread product, and underweight cash.
- Within the equity portfolio, overweight the euro area, Japan, and China; underweight most other emerging markets and the U.S.
- The dollar is likely to strengthen modestly against the euro, sterling, and most EM currencies. The yen has reached a bottom.
- Oil prices have further to fall. Chinese stimulus could help metals in the near term, but the longer-term outlook is grim. Gold is due for a bounce.
Clients interested in reading the full Report can access it here: Strategy Outlook Third Quarter 2015.