“The correction was not due to Ebola fears or the slowdowns in Europe or China.” - By Rick Golod for Invesco
The below commentary on the article is written by Anthony O'Brien
October's spike in volatility and "mini-correction" may have set the stage for a year-end rally in most regional equity markets.
Overweight US - In the US, the market correction was an adjustment back to trend rather than a reflection of deteriorating fundamentals. Looking ahead, declining energy prices could provide additional disposable income for the consumer to help power the economy and sharemarkets higher.
Neutral weight Europe - European stocks are too oversold to ignore. European large-cap multinational companies that pay dividends or have a history of increasing dividends are particularly attractive.
Overweight Japan - Japanese stocks may continue to benefit from a weaker currency and additional demand for equities from the government pension fund.
Underweight Emerging Markets - Emerging markets are entering a historically positive season. Nevertheless, the asset class remains a mixed bag, particularly as deleveraging acts as a drag on China’s economy.
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