Video: China’s role in the global economy

Summary

In the last of our China series. This video explores China’s ever increasing role in the global economy, the inclusion of mainland China A-shares in major MSCI Emerging market indices this year and the opportunities that may arise from China’s growing importance.

 

Active is: Finding value in Europe

For European equities, winter won’t last forever

Summary

While Europe faces its own share of political uncertainty, many of its headwinds are similar to those faced by capital markets around the world – not specific to Europe. In fact, with trade wars hurting the US and China, and with the Fed in danger of overreaching, European equities may be in a strong relative position.

Key takeaways

  • Thanks to Brexit, Italian politics and EU Parliamentary elections, political uncertainty is on the cards for Europe in 2019 – and the markets don’t like uncertainty
  • If European equities can weather the region’s political storms – which won’t be without challenge – they could emerge in a strong position, particularly compared with US stocks
  • Some of the biggest market headwinds aren’t Europe-specific, including trade wars (which could hurt the US more than Europe) and monetary policy (the Fed may be at bigger risk of overplaying its hand than the ECB)
  • Valuations are attractive for European equities, both compared with their long-term average and compared with US stocks: CAPE is around 18 in Europe vs about 30 in the US

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