Market Strategy Video October 2015

Fears coming from the economic slowdown in China prompt us to revise our economic scenario. Although the unanticipated downturn in China has not had a significant impact in the US and the Euro-Zone, where the actual changes are moderate, the central banks will potentially step in to mitigate the situation. It is anticipated that the ECB might extend bond purchases and the Chinese authorities might also activate stimulating measures.

For the equity markets, the situation may seem volatile in the short-term, but we predict that it will stabilize in the long-term. We recommend taking advantage of this correction phase. As for the bonds market, European high yield (HY) bonds are more attractive than US HY, seemingly because of their shorter duration.

For more indepth insight and analysis on current market trends to help you with your financial planning and investments, watch this month’s Market Strategy video.