According to a London/Hong Kong/Singapore report by Reuters on November 4, the evenly matched and unpredictable U.S. election caused some short-term transactions that assumed Biden to win the election. But money managers said that no matter who wins, they will insist on betting on Plenty of stimulus measures, China’s economic rebound and green prosperity. The full text of the report is excerpted as follows:
Rick Raquel, Global Chief Investment Officer of State Street Global Investment Management, said: “We expect considerable volatility in the market. However, the core investment conditions we see in the next 12 months will not be due to such volatility. And reversed.”
Raquel said that the large-scale fiscal and monetary stimulus measures introduced in response to the covid-19 pneumonia pandemic “have not yet fully functioned within the system,” and predicted that this will continue to determine investment conditions in the coming year.
In fact, fund managers do not seem to be in a hurry to restructure their investment portfolios, especially considering that the US election may not have a clear result until several days later, or may eventually have to go to court.
There are several reasons. First of all, no matter who is the next US president, the global health and economic crisis triggered by the covid-19 pneumonia will dominate the investment landscape.
Second, the continued gains in Asian stock markets indicate that investors believe that economic growth in the region will not be undermined by Trump’s victory or the policy deadlock in Washington.
Perhaps most importantly, funds should remain cheap and sufficient in the United States and other countries to support the long-term prospects of the stock market.
The outside world believes that because politicians of all factions are trying to stimulate economic recovery that has been hit by the return of the covid-19 pneumonia, the United States is bound to implement a stimulus package.
Although Biden’s victory may lead to more spending — and the yield on government debt will rise to pay for it — the possibility of a postponement of the election result has not caused much panic, despite a rebound in US Treasuries.
Salman Ahmed, the global head of Fidelity International’s macro and strategic asset allocation department, said: “We do have a pillar, that is, we know that monetary policy will remain very loose, and may even become more loose. “
Most people believe that the shift to investing in more environmentally friendly industries will also continue.
Rupert Watson, head of asset allocation at Mercer Investments, said: “No matter who is in power, the global economy will be green, and green energy is cheaper than fossil fuel energy.”
In Asia, investors say they will continue to bet on China’s recovery.
Andreas Kenig, the head of global foreign exchange at Amundi, Europe’s largest fund management company, said: “Overall, from a global perspective, there is insufficient global investment in Chinese assets. The current interest rate of the RMB is still relatively low. Yes, China has performed well in terms of growth.”
In today’s trading hours, emerging market assets are still promising. Kenig said that once the election results are clear, no matter who enters the White House, he will buy more yuan, Mexican pesos and Russian rubles.
China’s economic recovery has laid a solid foundation for corporate profitability. This year’s blue chip index has risen by about 16%, compared with a 1.4% decline in the broader global stock market—investors believe this will last longer.