Short and sharp analysis
STEPHEN CRANSTON: The five themes driving asset-allocation decisions
Insight from 27four's Fatima Vawda
It is quite rare for a fund manager to come right to the point in a succinct summary. But Fatima Vawda at 27four is one of those exceptions. In half a page she homed in on the top five themes driving asset-allocation decisions. None of these was an obscure academic argument; all were based on current events. Vawda says strong US earnings are feeding through the world. As US businesses report their best quarter for almost seven years, a renewed earnings momentum for global equities is gathering. But she gives this only a moderate chance of working out. After all, US President Donald Trump isn’t keen to share prosperity with the rest of the world and even wants to close borders. So there’s a case for tilting global equity holdings in favour of the US. The 27four team is overweight on offshore equities and commodities. Europe might not get any joy from Trump, but at least in the short term there is some euphoria over the election of Emmanuel Macron in France and a welcome pro-EU electi...
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