Hopes and concerns are wrestling for investor attention; while wait-and-see might be the sensible approach, our asset allocation team argues portfolios can still be robust despite all the volatility. Also in the “let’s keep it in perspective” department, don’t expect renminbi policy to swing to competitive devaluation; US company debt: less of a burden than it seems. Finally, and perhaps most worryingly, we highlight the need to tackle deforestation for the sake of world sustainability.
|Cautiously constructive despite trade war risk|
|As the rhetoric swells again in the arm-wrestling between the US and China over trade, and arguably global power, investors should keep an open mind about opportunities to add to market risk at better valuations.|
|Renewed renminbi jitters – Keep calm and carry on!|
|Cares and concerns may cloud sentiment on the renminbi, but these should not be mistaken for an – actually non-existent – devaluation policy or overshadow the supportive forces.|
|US corporate debt: Not such a burden|
|Could rising US company indebtedness and falling debt quality foreshadow recession? In all likelihood, no: coverage ratios are still quite healthy, and interest costs should stay low as long as interest rates remain where they are.|
|Preserving world forests: A crucial sustainable development aim
Working towards no deforestation contributes to the UN’s Sustainable Development Goals and is increasingly recognised as imperative for investors and society as a whole.
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