Global Economy

Asset allocation November 2013

Jeffrey Knight, CFA, Head of Global Asset Allocation | December 12, 2013

Changes over previous allocations: 1. Remain modestly overweight equities, expect equities to outperform bonds; Central Banks remain accommodative. Leading indicators are improving, suggesting better global growth ahead. Expect cash and fixed income to underperform; continue to favor absolute return strategies. 2. Remain underweight U.S. equity allocations mainly on relative valuation (limited near-term upside). Better opportunities

China’s reform announcement

Timothy Flanagan, Associate Portfolio Manager | November 21, 2013

China has announced significant social and economic reforms. We believe the vague wording and lack of timetables in the announcement should allow for balancing policy changes against short‐term growth prospects. If fully implemented, the plans announced should move the country towards a long-term sustainable growth model. If rolled out gradually, the near‐term effects on growth

An improving outlook for European equities

Philip Dicken, Head of European Equities, Threadneedle International Ltd | October 18, 2013

Economic data confirm that the Eurozone has exited recession. There are signs that corporate transactional activity is increasing as businesses become more financially secure. While Europe remains beset by challenges, the economic background is improving, valuations are looking more attractive and investors who have not been paying attention to European stocks may want to take