Our Global Investment Strategy service recently published their Strategy Outlook for Q4 2015.
The quarterly report highlights the following key points:
• Tactically, investors should maintain a cautious stance on risk assets for now. The turmoil in emerging markets is not yet over. A weaker yuan will add to the fire.
• As one looks toward 2016, the effects of China’s fiscal and monetary stimulus should begin to feed through to the global economy, giving EM and cyclical stocks a boost.
• Despite stronger global growth next year, deflationary pressures will persist. Treasury yields could fall, even if U.S. growth does not falter.
• The dollar will remain broadly range-bound against the euro and the yen. The greenback has more upside against sterling, and in the near term, against EM and commodity currencies.
• Investors should underweight U.S. stocks relative to Japanese and euro area equities. Over the long haul, owning Chinese H-shares is our single best trade idea.
Clients interested in reading the full report can access it here.