18 January 2018: Drive for show and putt for dough?
– We remain in an environment where we believe it will pay to take equity market risk, staying focused on the long term, despite the noise from the daily news flow.
– Tax reform will stimulate the US economy. We are monitoring for both positive and negative second round effects.
– As central banks gradually withdraw accommodative monetary policy, we remain doubtful that we are approaching a major turning point in bond markets.
– We add an overweight position in emerging market equities relative to Australian equities. We also increase our currency positions and global equity overweight.