The implications of China’s currency adjustment, The one thing you can control, and US rebounds as China currency worry eases; Europe, Asia off
Here are the top 3 insights for August 7th.
- Eastspring Investments: The implications of China’s currency adjustment
- Vanguard: Markets on a volatility ride — the one thing you can control
- Fidelity: US rebounds as China currency worry eases; Europe, Asia off
- On the currency front, it is difficult to justify labelling China as a currency manipulator based on the criteria outlined by the US Treasury.
- China’s current account balance only averaged 1.0% of GDP over the past four quarters. The country’s net foreign exchange intervention, per US Treasury estimates, was -0.2% of GDP in the 12 months up to April 2019.
- Further escalation of trade dispute will strengthen the case for further Fed rate cuts in the next few meetings, making a September cut a high possibility.
Genuine Scores for the top 3 Asia Pacific Funds:
- Harvest Asian Bond Fund: 95
- B&I Pan-Asia Total Return Real Estate Secs USD: 92
- JSS Bond — Asia Opportunites: 92
- While a global or major regional recession in the next 12 months isn’t our base case, we do expect global growth to soften.
- We advise all investors to periodically rebalance their assets so gains in stocks, for example, don’t leave a portfolio with a greater-than-desired stock exposure.
- You can’t control what happens half a world away while you sleep. But if you have an asset allocation that you can remain committed to, you’re very much in control.
Genuine Scores for the top 3 USA Mixed Assets Funds:
- TCW Strategic Income Fund: 98
- John Hancock II Multi-Index Income Prsv Port: 95
- Vanguard LifeStrategy Income Fund: 95
- US stocks bounced back Tuesday after the biggest drop of the year Monday, as the People’s Bank of China signaled its desire to limit the decline in the yuan, though worries remained over the US-China trade war.
- European equities slipped Tuesday as markets continued to focus on the US-China trade dispute, but the selling pressure eased from Asian hours.
- Asian markets extended losses Tuesday, following the lead set by Wall Street Monday, with the escalation in US-China trade tensions again the main focus of investor attention.
Genuine Scores for the top 3 Europe Funds:
- ITI Fd Ucits ETF Sicav Russia-Fcsd: 92
- Alpha Real Trust Limited Ord Npv: 88
- CSIF(Lux) Bond Aggregate: 81
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All the best,
Genuine Impact Team
p.s. all Genuine Scores are accurate as of the 7th of August