22 June 2017: The paradox of historical knowledge
– Forecasting the future appears to be increasingly difficult, despite the growing volume of data and rising connectivity. More than 80% of our clients believe now is the most unpredictable period in history.
– We believe favorable market conditions can remain in place in the short-term, but investors need to adjust to lower long-term visibility. Investment in longer-term investment themes can help cut through the uncertainty.
– Central bankers have no need to aggressively tighten policy to restrain inflation or leverage. Ongoing accommodative monetary policy should support global equities, where we are overweight in our tactical asset allocation.
– We add an overweight position in the Canadian dollar relative to the Australia dollar. The Canadian economy is recovering from a period of slow growth, while Australia is struggling with weak commodity prices.