Our Insights – April 2019
In this edition, read why ‘globotics’, the next stage of globalisation, threatens to overwhelm our capacity to adapt. We also explain what the energy transition means for equity valuations and present our asset allocation for the second quarter.
|Richard Baldwin, one of the world’s leading globalisation experts, argues that the explosive pace of developments in robotisation and telemigration threatens to overpower our ability to adjust.
|A fragile goldilocks environment|
|All assets have rallied recently, partly on the back of central bank dovishness. But, late in the economic cycle and with growth in Europe and China structurally challenged, downside risks remain. Goldilocks is on edge.
|Energy transition: an infographic|
|Investors take note! Marginal changes underway in the global energy market potentially put large swathes of equity value at risk over the next few years. This is because what matters for valuations is which energy sources dominate the growth in demand, not which sources dominate the overall level of demand.
|MSCI to add more A shares: a blessing for foreign investors|
|The weight of Chinese A shares in MSCI’s global indices is set to rise, creating a major long-term opportunity for foreign investors. The move comes amid further reform in China and steps to open up its capital markets.
Our Insights appears every quarter and offers investors views on future economic trends and the outlook, and possible implications for investing. Contact your local representative for more information.
Cyber-attacks can hit investors and other stakeholders hard. Leaks, compromised customer data, denial-of-service attacks or file destruction can disrupt operations, lose client trust and lead to tougher legislation.
Trade tensions continue to be a bellwether for markets and as the US and China vie for supremacy, globalisation could move into reverse. At times like these, investors should build robust portfolios that include defensive trades and hedges.
The uncertainty around the Sino-US trade requires robust multi-asset portfolios.We detail our approach. Elsewhere we explore the opportunities the boom in life sciences is creating in listed real estate and explain how we assess the strength of business models and corporate governance in a world where cyber-security risks abound. The Intelligence Report will take a summer break for the next month. Happy holidays to all our readers!
A quarterly by BNP Paribas Asset Management