Our experts’ share their views on the markets

The fifth edition of Perspectives presents four priorities for investors that will prevail over the coming year:

• Chinese equities

  We challenge views that China is facing a “hard landing”. Chinese authorities are willing to use all available policy measures, and there are signs that the announcement of the Five-Year Plan, in tandem with fiscal and monetary policy, are already having a positive impact.

• Inflation-linked bonds.

  With inflation expectations so low, it may seem a leap of faith for many investors to recalibrate their bond positions in favour of inflation-linked instruments. However, we believe those who do are likely to be rewarded for doing so.

• US credit.

  Rising debt levels and changes in the credit market environment are leading some investors to question the sustainability of returns from this asset class. We see no immediate prospect of a credit crisis, but credit investors need to be highly selective.

• Commodities.

  The key drivers behind the current oil/commodity weakness have been a shift in the commodity supply cycle and subdued global growth. We expect both driving forces to reverse slowly next year.

Download the latest edition of our magazine Perspectives