“There are certainly some worrisome issues, as always, but we find none of them convincing enough to halt the upside momentum in equity prices,” - John Vail, Nikko Asset Management
Below summary by Chris Walker
Against a largely positive global macroeconomic scenario reinforced by the US Federal Reserve’s accommodative monetary policy, Tokyo-based Nikko Asset Management has increased its already overweight position on global equities.
The firm’s key investment committee made this call on the back of its expectations of equity prices rising even further in the coming months. This was the second straight quarter that the committee arrived at an overweight stance on global equities since its previous meeting in June, after revising its stance to neutral in March for the first time in about two and a half years.
However, Nikko Asset Management chief global strategist Mr John Vail cautioned, “Undoubtedly, geopolitics remains a significant risk factor and we will continue to be ready to adjust our view. China’s economy must also be watched very carefully because the tail risk of a major downturn is far from negligible.”
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