Hedging multi-asset portfolios amid 'concerning' increase in market complacency

Bullish on equities

The economic backdrop for risk assets remains mildly favourable, in particular for equities.

At the same time, risks are creeping up, spreading in many asset classes, and discrepancies between the exceptional monetary stimulus and the solid growth rates are unveiling.  We see the most interesting opportunities in European and emerging markets (EM) equities, which still offer attractive valuations. In the eurozone, the appreciation of the euro is impacting earnings growth. Harris Associates' CIO: Why I only hold one Japanese company and am avoiding EMs But thanks to balancing dynamics linked to the internal demand strength, we expect momentum to remain positive, especially ...