Hi,
Here is the summary of the changes to our portfolios from this morning’s meeting:
Reduce EAFE
- Europe’s growth is slowing especially Germany’s
- Country specific issues – Brexix and Italy
- Concerns on trade – autos
Extend duration on bonds
- Federal Reserve on hold after 9 rate increases
- Inflation in check
- Near end of cycle
Increase allocation to Emerging Market stocks
- China enacting some stimulus
- China taken steps to shore up banking system and confidence
- External debts OK
Increase allocation to US stocks
- Improved valuations
- US consumption source of global demand
- Expect any slowdown to be relatively mild
Here are the slides from this morning’s discussion: 022519 allocation changes RM