Unless the political uncertainties subside and manufacturing stabilises, the weakness of this sector could also dampen consumer spending. However, a deep recession remains improbable.
EQUITIES ARE ATTRACTIVE
Equities are supported by increasingly negative bond yields, cautious investor positioning, historically positive Q4 seasonality, and loose monetary policy. Bond yields appear to have seen their lows for now.
We have begun to selectively build up riskier positions in our portfolio. However, we would need to see signs of an economic recovery before…