BNP Paribas Asset Management - MAQS Asset Allocation Quarterly
The latest issue of the Asset Allocation Quarterly from BNP Paribas Asset Management’s Multi Asset, Quantitative & Solutions (‘MAQS’) investment group is now available.08.10.2019 | 10:45 Uhr
Summary
- Transitioning to a reflation regime? – Several developments suggest that a move to a reflationary environment is a
material risk, if not immediately. We explore supply shocks given ongoing de-globalisation; fiscal stimulus; and a more
traditional route: an economic recovery, with a focus on Chinese policy easing.
- Risks in fixed income more skewed than in equities – A reflationary shock would represent a significant shift, and one
that fixed income markets in particular are not priced for. We find that bond markets appear rich compared to equities
across regions.
- Need to be nimble – We have long argued for the need for investors to be nimble in the current backdrop. Our base case
remains ‘fragile goldilocks’, but the likelihood of our risk scenarios has increased.