Key Takeaways
- • Asian investors are being urged by advisers to allocate more to alternative investments to balance portfolios and reduce risk as global markets remain volatile, according to the South China Morning Post.
- • Markets are weighing several political uncertainties following Donald Trump's unexpected US presidential election win, including whether the Federal Reserve will raise rates in December as previously expected.
- • Further event risks include an Italian constitutional reform referendum on December 4 and the French presidential election in 2017, while the shape of a UK Brexit remains unclear.
Summary
The South China Morning Post's "Across The Border" column reports that Asian investors should look more to alternative investments to balance their portfolios and reduce risk as global markets remain volatile and politics unpredictable. The article frames alternatives as a hedge against what it describes as current "unpredictables" in the investment landscape.
The backdrop is the unexpected victory of Donald Trump in the US presidential election the previous week. Market participants were waiting to see whether the Federal Reserve would now raise interest rates in December, a move that had been widely expected before the election result.
The article adds that further political events are approaching. A referendum on constitutional reform in Italy is scheduled for December 4, and the French presidential election is due the following year. It also notes that it remains far from clear whether markets can expect a "soft" or "hard" Brexit.
The article also highlights uncertainty over the policy direction of the incoming US administration. Trump is described as untested in the role, and markets are still awaiting clarity on whether his pre-election pledges, some of which the article characterizes as sometimes outrageous, will be implemented or prove to be rhetoric.
The backdrop is the unexpected victory of Donald Trump in the US presidential election the previous week. Market participants were waiting to see whether the Federal Reserve would now raise interest rates in December, a move that had been widely expected before the election result.
The article adds that further political events are approaching. A referendum on constitutional reform in Italy is scheduled for December 4, and the French presidential election is due the following year. It also notes that it remains far from clear whether markets can expect a "soft" or "hard" Brexit.
The article also highlights uncertainty over the policy direction of the incoming US administration. Trump is described as untested in the role, and markets are still awaiting clarity on whether his pre-election pledges, some of which the article characterizes as sometimes outrageous, will be implemented or prove to be rhetoric.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.