Great stuff here from BofAML’s David Woo:
The major points:
- US dollar headwinds gone, especially EM trade.
- EMs to keep blowing up, feeding USD bid.
- Chinese outflows to increase as it slows.
- EUR overshot, killed growth.
More great stuff on the trade deals:
Totally agree on all of it. Rising DXY will slam commodities and the Australian dollar. We remain comfortable with our 70 cents year-end view and expect lower again next year.
David Llewellyn-Smith is the chief strategist at the MB Fund which offers two options to benefit from a falling AUD so he is definitely talking his book. The first option is to use the MB Fund International Stocks Portfolio which is always 100% long as a part of your own asset allocation mix. The second option is to use an MB Fund tactical allocation in which we choose the asset mix for you, including exclusively to international stocks but with bonds and other assets as well to ensure a more conservative mix.
The recent performance of both is below:
The information on this blog contains general information and does not take into account your personal objectives, financial situation or needs. Past performance is not an indication of future performance.
