BNP PARIBAS ASSET MANAGEMENT - Finance 4 1440x300
Analyse de l'allocation d'actifs, Investment strategy, Market commentary

Asset Allocation Quarterly

October 10, 2018 - Christophe MOULIN, Guillermo FELICES, Colin HARTE, Maxime DAVID

So far so good, but markets underestimate risks

• Asset returns were mixed in Q3 2018, with US equities in the lead, but other markets lagging, as investors digested the risks from emerging markets (EM), Italian politics and advancing trade protectionism.

• In September, however, equities and bond yields rose, suggesting that markets had become less preoccupied about these risks.

• We disagree with this assessment. We still see the risks associated with US-China trade tensions, Italian politics and US monetary policy normalisation as a force that will weigh on markets in Q4 and 2019.

 

Sobre o mesmo assunto:
BNP PARIBAS ASSET MANAGEMENT - Finance 1 1440x300
September 10, 2018

SUMMARY: US equities continued to outperform other markets such as EMU and EM equities. This partly reflects the divergence between the US economy -which is supported by fiscal expansion and a patient Federal Reserve- and relatively weaker growth in the eurozone and EM. But there is more to this divergence than faster US economic growth. The US equity rally has been led by the IT sector. This has accounted for 20%-50% of US equity returns since 2016. The rally is now looking stretched on various metrics. The other salient development in August was renewed stress in emerging markets (EM). A combination of economic stress in Turkey, weaker growth in China, Sino-US trade tensions and a stronger US dollar hurt EM assets. We believe there is value in EM assets, but the obvious circuit-breakers are still absent: a weaker USD, aggressive China stimulus and fresh Sino-US trade talks. EM assets prospects have soured and protectionism and tighter liquidity continue to cloud their longer-term prospects.

BNP PARIBAS ASSET MANAGEMENT - Finance 4 1440x300
July 11, 2018

Foreseeing calmer markets over the next few months, we have identified several reversal themes

BNP PARIBAS ASSET MANAGEMENT - Finance 1 1440x300
June 27, 2018

SUMMARY: Despite trade tensions, concerns about global growth and more volatile markets than in 2017, our base case scenario remains one of robust global growth and contained inflation. This underpins our bullish view on equities, with a preference for eurozone equities where we see positive earnings growth prospects and room for margin expansion

Asset allocation – September 2018

SUMMARY: US equities continued to outperform other markets such as EMU and EM equities. This partly reflects the divergence between the US economy -which is supported by fiscal expansion and a patient Federal Reserve- and relatively weaker growth in the eurozone and EM. But there is more to this divergence than faster US economic growth. The US equity rally has been led by the IT sector. This has accounted for 20%-50% of US equity returns since 2016. The rally is now looking stretched on various metrics. The other salient development in August was renewed stress in emerging markets (EM). A combination of economic stress in Turkey, weaker growth in China, Sino-US trade tensions and a stronger US dollar hurt EM assets. We believe there is value in EM assets, but the obvious circuit-breakers are still absent: a weaker USD, aggressive China stimulus and fresh Sino-US trade talks. EM assets prospects have soured and protectionism and tighter liquidity continue to cloud their longer-term prospects.