Market View Q4 2019

Our quarterly market outlook outlines our investment position on each of the major world markets.

FacebooktwitterlinkedinmailFacebooktwitterlinkedinmail   by Kasim Zafar, 3rd December 2019

Market uncertainty due to Brexit has been ongoing for more than three years, and due to the US-China trade war for almost two. Both of these have real implications for companies’ long term investment decisions, such as where to build a new factory or which suppliers to work with. This uncertainty has meant that companies have been delaying decisions and not making new investments. As a result, global economic activity has slowed.

While we are hopeful, we are not yet optimistic. The balance of risk remains on the downside so we have taken risk off the table once again: this time by focusing portfolios on managers with strong valuation discipline, and selling investments when they get expensive.

 

Please note: our views may change at any time.

The overall structure of any portfolio is determined by its risk profile, and our views will influence your portfolio based on its default positioning.

About the author: Kasim Zafar

Kasim graduated with a BSc (Hons) in Physics from Imperial College and is a CFA charter holder, being a regular member of the CFA Institute and CFA UK. He began his career in investments in 2002, gaining experience as a portfolio manager and senior analyst of global capital markets. His experience spans multiple asset classes, constructing portfolios with varying risk/return objectives and active risk management processes.

Kasim is the portfolio manager for the EQ Investors Best Ideas portfolios. He is an active member of the investment management, strategic asset allocation and fund selection committees.

When not immersed at work, Kasim often finds himself stumped and constantly amazed by his young daughter at home. He also enjoys spending time in the kitchen practising his “cheffy” skills with both European and Asian cuisine, reflecting his mixed background.