Staying focused on global opportunities
CIO MONTHLY | JULY 2018
"In any moment of decision, the best thing you can do is the right thing....the worst thing you can do is nothing." Teddy Roosevelt
Last month, where we set the course for the rest of 2018 with our strongest views, one of our decisions was to continue to favour international equities over domestic equities. This month, we delve deeper into why we hold this view. We highlight the greater opportunities that international equity markets can offer, from more exposure to faster-growing sectors (such as technology and healthcare), to stronger earnings expectations and less demanding valuations.
We also discuss some recently updated long-term return expectations that have moved in favour of offshore equities (relative to domestic equities). This suggests this near-term tactical tilt may evolve into a more strategic position when we undertake our two-yearly portfolio review later this year.