Page 13 - ISQ UK JANUARY 2020

JANUARY 2020

“ The Chinese economy will continue to grow impressively from an international

perspective, as the prowess of the local consumer continues to build. However,
policymakers are increasingly having to manage new pressures. ”

the Brazilian currency has shown). Both zones also have their
fair share of troubled nations, struggling with debt and citizen KEY TAKEAWAYS:
discontent. Meanwhile, firmer commodity prices would aid • Lower earnings multiples, higher dividend yields,
Russia, the Middle East, and Australia, an outcome relatively and an overvalued US dollar are, on their own,
dependent on bigger discussions about global trade and the insufficient reasons to invest abroad. The catalysts
speed of the opening of the Chinese economy. that will cause international markets to roar back to
recovery will be found in bona fide developments.
… TO PERFECT THE PORTFOLIO
• While any trade angst is unlikely to be a helpful
Aside from the fallout from trade wars, there remains backdrop either in the US or abroad, the prospects
burgeoning pressure for countries around the world to forge of positive progress remain encouraging.
new diplomatic allegiances and strengthen trade ties. Both
could be boons for investors. Yet, methodical and disciplined • The Chinese economy will continue to grow impres-
asset selection remains paramount. Actively-managed sively from an international perspective, as the
strategies and sufficient diversification are certainly warranted prowess of the local consumer continues to build.
when investing abroad. Though an exclusive allocation to US However, policymakers are increasingly having to
assets has been rewarding over the past decade, international manage new pressures.
assets may yet provide untapped potential in the next decade • Aside from the fallout from trade wars, there
ahead. remains burgeoning pressure for countries around
the world to forge new diplomatic allegiances and
strengthen trade ties.

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