Malcolm Wood
Malcolm Wood
appear banks certain cheap consumer cost credit cutting domestic fee focused good income increased industries leading market portfolio stocks stress
In China, we stress a portfolio focused on domestic stocks and certain market leading consumer stocks in industries where there has been consolidation. Banks are also interesting, with good credit growth, the probability for increased fee income and implementations of cost cutting measures. Valuations may not be cheap but still appear attractive.
elevated focus
A lot of the domestic-demand stocks, which have been our focus, are at elevated valuations now.
banks believe central imminent major markets rally reached threat
Asia-Pacific markets have reached our index target, but we see no imminent threat to the outlook. Can the rally continue? In the short-term we believe so, particularly if the major central banks acquiesce.
clients context curve inevitably investors looking news spells yield
Clients and investors inevitably say that a yield curve inversion spells a recession, but looking at the US yield curve in the context of other indicators, the news is positive.