A View from Asia
The current debate on incipient inflation is the elephant in the room. Samir Mehta provides his thoughts.
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Samir Mehta
- The US administration is determined to turbocharge fiscal policy; motivated to ensure full employment, higher wages and sustained economic growth without regard to fiscal deficits.
- China, on the other hand, has signalled a diametrically opposite view towards pushing growth and offering more stimulus, choosing instead to tighten monetary and fiscal policies to gently deflate bubbles that formed after its massive 2009/10 stimulus.
- I have no inkling as to which of these diverging views will likely prevail; caution, rotation and managing risk is my focus in the coming months.
Disclaimer
Past performance is no guarantee of future performance. The value of an investment and the income from it can fall as well as rise as a result of market and currency fluctuations and you may not get back the amount originally invested. Investing in companies in emerging markets involves higher risk than investing in established economies or securities markets. Emerging Markets may have less stable legal and political systems, which could affect the safe-keeping or value of assets. The Fund’s investments may include shares in small-cap companies and these tend to be traded less frequently and in lower volumes than larger companies making them potentially less liquid and more volatile. The information contained herein including any expression of opinion is for information purposes only and is given on the understanding that it is not a recommendation.
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