Volatility: made in China
William Hobbs, Head of UK and Europe Investment Strategy, talks to Rupert Howard, Senior Portfolio Manager, about the recent fears surrounding the Chinese economy and how the resultant market volatility has affected portfolios.
Although it has been a challenging month for investors, Rupert points out that China represents an insignificant position in portfolios. However, the impact of the volatility has been considerable with the spillover affecting both the emerging markets complex and developed markets equities, causing most portfolios to give back much of the gains made in the first half of the year. While China remains problematic, Rupert believes that the global outlook remains much more encouraging, evidenced by the robust growth in the US and Europe. Rupert’s fundamental view remains unchanged and he is taking the opportunity to add cash back into the market at currently compelling valuations.
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