Complacency Ahead of Election Cycle and Possible Fed Hike
September 8, 2016
Against a backdrop of modest global growth, the forthcoming, crowded political agenda is setting the stage for the future of economic policies. Financial markets seem, to us, complacent and are not fully discounting the possible new wave of election-related volatility ahead. We prefer a cautious approach to equities, while we continue to favour EU credit and Emerging market assets. We maintain a positive view on gold and on the US dollar (vs the euro) as they may benefit from being safe havens ahead of a possible wave of volatility.