Developed and emerging markets equities maintain growth momentum — Barclays

AMMAN —  Equities in developed and emerging markets continue to offer growth potential for investors seeking to take advantage of tactical investment opportunities, according to Barclays’ Private Bank’s recently released research report. 

The bank’s Q3 2017 “Compass” report examines major asset classes globally.

In the report, its tactical allocation maintains an overweight position in developed markets equities, especially with leading indicators, related to this asset class, according to a bank statement.

Barclays’ strategists believe that both the US and European stock markets (excluding the UK’s) are currently expected to offer superior growth potential for investors.

The report also maintains its overweight allocation to emerging markets equities as the business cycle continues to firm up.

The stabilisation of business confidence surveys and trade data support this view, the statement said.

Korea, Taiwan and China (offshore) maintain their positions as markets of choice, the statement indicated. 

As a result, Barclays’ investment committee lowered its allocation to cash and short-maturity bonds from neutral to underweight.

Similarly, high yield & emerging markets bonds allocation also remained overweight. 

Although relatively expensive, Barclays’ strategists continue to view high yield bonds as attractive in the context of a fixed income complex within a moderate risk portfolio.

Commenting on the report, Francesco Grosoli, Barclays’ head of Private Bank for Europe, the Middle East and Africa said: “While the outlook for the global economy continues to improve, as indicated by corporate earnings and trade statistics, investors are best served by continuing to diversify their portfolios across both asset classes and geographies.”