Asset Allocation Outlook
Although sentiment on the markets was mostly positive in October, many equity markets still closed the month down. The loss was small in the US, with Europe and emerging markets earning marginally larger losses. The Japanese equity market succeeded in noting a gain. Bond yields climbed sharply in the US and UK. This had little impact on equities during the greater part of the month, partly because yields had declined in the preceding three months. Yet at the end of the month the higher yields started to worry equity investors after all, incidentally without affecting general sentiment too much. Spreads tightened on government bonds issued by Southern European countries, investment grade and high yield credits and emerging market debt in October.
Please see Van Lanschot Kempen’s Asset Allocation Outlook for November. The highlights this month are:
- US equity markets gain after US elections, Europe retreats
- Economy and earnings stronger in US than in Europe
- Equity overweight slimmed down slightly
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