Asset Allocator's Soapbox: Tristan Hanson

The most significant recent shift in our asset allocation has been the increased equity weightings in China, in turn reducing the US and Japan weightings. Structural economic problems are far more severe in the developed world than in China. With fears of a global growth relapse mounting and domestic inflation muted, the Chinese authorities are unlikely to tighten policy much further, and therefore fears of a major slowdown in China are overdone. Following a long period of underperformance, Chinese equities are not expensive on 13x forward earnings given long-term growth prospects. While...