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Excited to share the latest market insights in our Market Commentary - May 2024! Dive into the trends shaping Global Equities, China's Economic Strategies, and the dynamics of Fixed Income Markets. This comprehensive update provides valuable perspectives for navigating today's investment landscape. Click the link below to read more! https://lnkd.in/gkhjSN7g #GlobalEquities #ChinaEconomy #FixedIncome #InvestmentStrategy

Following the correction in the US equities market, flows in Asia are shifting from the higher beta markets – such as Japan, Taiwan, and India, to the Hong Kong and China markets, where valuations are attractive. Elsewhere, Southeast Asia markets are seeing some pressure amid the still higher for longer interest rates in the US and the strong greenback. Various geopolitical risks worldwide also continue to be a major headwind to the overall region, especially with the heightened geopolitical tensions in the Middle East. Access our latest multi-asset views here: https://bit.ly/4bGxCuU Follow us on LinkedIn and get the latest news and investment insights. ------------------------------------------- 💡 Know more about Value Partners: bit.ly/3AIa8FX 🔎 Facebook: bit.ly/3mjfFLB  🔎 YouTube: bit.ly/valuepartners4236 🔎 Subscribe to our e-newsletter: bit.ly/3AGDDI6 #valuepartners #mutualfunds #investments #assetmanagement #wealthmanagement  - Investment involves risk. The above information is for reference only. It does not constitute an offer or an invitation to subscribe any securities, or a recommendation in relation to any securities.

Did you know that inflation has continued to ease in many countries? Equity markets in the US, Asia-Pacific, and emerging markets made positive progress in June. However, Chinese equities retreated as the country's property woes continued. Read our most recent market update, linked below, to learn more.

In our recent Asset Allocation Committee meeting, we trimmed our overweight to emerging markets equities and added modestly to real assets. Despite attractive valuations and a range of stimulus measures from Chinese officials, we expect a tepid recovery in growth amid economic challenges in housing, employment, and consumer sentiment. Learn more about our market perspectives and how they inform positioning in our multi-asset portfolios. #economy #inflation #AssetAllocation

“We remain convinced that the US markets still have significant upside potential, despite the high valuations,” says Christopher Dembik of Pictet Asset Management France in this interview with Daniel Pechon. It is the only developed economy that is resilient and maintains extremely dynamic consumption. The only slight downside is that the property market at is not very strong. But this is far from a crisis. It’s more like a market in slow motion. Meanwhile, the US economy is benefiting from its appeal. Financial flows continue to head for the United States in search of performance, with savers favouring dollar-denominated investments to finance the deficit.   https://lnkd.in/eUcHajrD

Natixis IM Survey Says Markets Are Too Optimistic: Markets are currently too optimistic, according to a survey by Natixis Investment Managers citing inflation and geopolitical risks as potential triggers to end the market rally. #NatixisInvestmentManagers #survey

# Global Equity Bubble: A Call for Rational Valuation In recent years, the global equity market has exhibited signs of an unsustainable bubble, with valuations soaring across the board, irrespective of country or sector. This phenomenon is particularly concerning given the lack of significant market corrections in major economies like the United States and India. The persistent overvaluation of equities, driven by speculative investments and disconnected from fundamental economic indicators, poses a serious risk to global financial stability. Valuation Discrepancies and Economic Fundamentals A rational valuation of a country’s stock indices should ideally reflect its expected GDP growth, debt-to-GDP ratio, and other macroeconomic factors. However, this is not the current reality. Emerging markets (EMs) are experiencing growth fueled by investments from developed markets (DMs), while DMs are benefiting from the inflated valuations of EMs. This interdependence creates a precarious situation where both EMs and DMs are vulnerable to sudden market corrections. The Need for Market Correction The absence of market corrections over an extended period is a symptom of underlying instability. Historically, market corrections serve as a mechanism to realign asset prices with their intrinsic values. Without these corrections, the risk of a sudden and severe market crash increases, potentially leading to a widespread financial crisis. Towards a Rational Market Achieving a rational market where valuations are aligned with economic fundamentals requires a shift in investor behavior and regulatory oversight. Investors should consider reducing their global equity holdings and adopting a more cautious approach. Additionally, policymakers must implement measures to ensure that market valuations are reflective of economic realities, thereby reducing the risk of speculative bubbles. Conclusion The current state of the global equity market is unsustainable and poses significant risks to financial stability. A return to rational valuation, driven by economic fundamentals, is essential to ensure a stable and predictable investment environment. Only then can investors expect a decent return on investment (ROI) without the constant fear of a market stampede on any given Monday.

Read Paul Niven’s monthly market view: #inflation surprises, economic resilience and tech sector thrives – February was anything but dull for investors. As Chinese shares saw a rebound and US #equities outperformed, we continue to navigate the ever-evolving investment landscape with confidence. https://lnkd.in/ecMnj9UD Capital at risk.

The May edition of Schroders Emerging Market Lens is now available. The data and insights covering EM equities and bonds. Some takeaways from this month’s chart packs: 👉 After a weak 2023, consensus expectations are for EM earnings to soar 📈 👉 China equities overtook broad EM year-to-date in April. This has continued in May with the MSCI China now up 12% in USD terms - and the market has rallied 28% from its 2024 low in January (past performance not the future obviously...). 👉 At the individual market level, most EM are cheap versus their own history. 👉 YTD performance in hard currency EMD remains bifurcated. 👉 Where are the cheap valuations in hard currency EMD? 📊 📚 Read more in our comprehensive EM Lens chart packs (link in comments below). 

Overall, Q3 was a volatile quarter for global equity markets. The MSCI ACWI index finished the quarter up 0.5%, with Emerging Markets (+2.5%) outperforming Developed Markets (+0.2%). The S&P 500 declined slightly over Q3. Weak economic data and uncertainty over monetary policy resulted in heightened volatility, but resilient corporate earnings and a rate cut in September led the S&P 500 to recover almost all of its earlier losses by the end of the quarter. UK equities performed positively, with the FTSE 100 up 1.8%. Labour’s landslide election fuelled optimism about the domestic economy, and in August, the Bank of England cut interest rates for the first time in four years, providing a further boost for investors. Japanese equities also experienced a turbulent quarter, with August bringing a sharp selloff in markets following weak US economic data and the Bank of Japan raising interest rates. This volatility spilled over into international markets, but currency effects shielded UK investors. The index recovered to finish the quarter broadly flat (-0.4%). Emerging Markets performed well (up 2.5%), with a late rally in China sparked by a raft of stimulus measures announced by Beijing to reverse an economic slowdown. For more information, please read our full Q3 Market Commentary. #notherportfolioservices #Q3 #marketcommentary