Asset Allocation Outlook
September briefly looked as if this year it was going to live up to its reputation as a poor month for the markets. US and European equities fell by about 4% in the first trading days of the month. As in August, the reason was disappointing data on the US job market and the ISM index for industry, plus worse-than-expected results from the tech sector. Yet US equities in fact closed the month up slightly, while European equities ultimately remained almost unchanged. US growth has stayed at the same level, the Fed cut interest rates by more than anticipated and at the end of the month the Chinese government announced a series of economic stimuli. The latter drove Chinese equities up by 17%.
Please see Van Lanschot Kempen’s Asset Allocation Outlook for October. The highlights this month are:
- Fed off to an aggressive start to interest rate cuts, slower pace to follow
- Increasingly likely that ECB will cut interest rates in October
- Chinese economic stimuli not enough
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