Investment Directors’ Bulletin (December 2015)Contributors Edmund Brandt, Edward Walker
Edmund Brandt and Ed Walker write in their capacity as investment directors. Their asset allocation views are based on a 12-month time horizon and reflect the input from various investment teams within J.P. Morgan Asset Management. The discussions are considered with Edmund and Ed ultimately producing their views on the regions in terms of underweight, neutral or overweight.
Equity markets consolidate fourth-quarter gains in November
The MSCI World Index finished November up a modest 0.6% in local currency terms. However, the continuation of the fourth-quarter equity rally was important. So far in the quarter, global equities have risen by an eye-catching 8.6% and on a year-to-date basis have gained 4.3% in local currency terms. In November, Europe outperformed other regions of the world, rising 1.9%. Led by stronger macro and corporate survey data, the best performing markets were Belgium, Denmark, Ireland, Austria, Germany and Finland, all up by over 4.5%. By contrast, the UK, Switzerland, Italy, France and Spain lagged, rising by 1.5% or less. Japan rose a respectable 1.1% in the month, while the US and Canada were essentially flat. Conversely, the MSCI Emerging Markets Index finished November down 2.7% in local currency terms, as investors continued to worry over the 2016 growth outlook. China was down 3.3% and India was 2.9% lower. The best performing emerging markets in November were Hungary (up 12.0%) and Russia (up 3.4%).
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