The risk of recession has reduced over the past month, according to the multi-asset team at Schroders, which upgraded its view on equities from 'neutral' to 'positive' and downgraded government bonds to 'neutral' last month.
The team, which increased its exposure to 'cyclicality' via emerging market equities and US small caps in October, has now also upgraded its view on Japanese equities from 'neutral' to 'positive' over recent weeks. "Our economic models still point to a weak growth environment. That said, we have seen a reduction in political risk associated with trade wars and a 'no-deal' Brexit, which reduces the risk of a global recession in 2020. This allows us to focus on the benefit of looser central bank policy," it said. Schroders survey: 94% of investors concerned about Brexit "[In Japan], ...
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