What to look for in equity markets as the business cycle ages

SINGAPORE (Sept 13): With the emergence of renewed geopolitical tensions, the upward incline of equity markets have come to a halt in August, even after a strong earnings season for 2Q.

Nonetheless, Amundi Asset Management says the economic cycle remains sound and synchronised on a global level, and recommends that risk allocation favour equity over credit, with a focus on areas of the market which still retain a valuation gap.

“The [global] equity outlook is still constructive, driven by earnings growth and the positive economic backdrop,” note the asset manager’s chief investment officers (CIOs) Pascal Blanqué and Vincent Mortier in Cross Asset Investment Strategy (Sept 2017), the company’s monthly global investment views newsletter.

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