Gerald Moser

We have increased our equity market overweight which we continue to maintain. We see the economic backdrop as benign, corporate profitability stabilising and improving, and likely lower key policy rates as stimulating. At the same time, we are underweight fixed income, where we expect longer rates –particularly USD rates – to remain elevated and hence view the return outlook as less attractive.

Within equity we maintain our preference for US equity despite the excellent performance and elevated valuations. We don’t expect valuation multiples to expand much further but do expect enough return potential from earnings growth. Momentum remains clearly with US equity, and the outcome from the US elections should continue to benefit the US economy and equity markets. 

Podcast: The Astute Investor

Book: How Big things get Done, Dan Gardner, Bent Flyvbjerg