Global markets are flip flopping with the US market hitting all time highs. US fiscal policy uncertainty, historically low volatility, a rising USD, rising yields and stretched valuations are raising doubts on the recent exuberance in the equity market. Strong commodities along with a robust USD and rising yields suggests there is high probability of a correction in one or more of the markets in the short-term. Small caps have substantially underperformed in the recent volatility, however we continue to see this size category as the best growth and yield to value offering. We maintain overweights in Banks, Health Care and Miners despite growth being capped by a weak global and local growth outlook. Quant strategy model portfolio update... (VIEW LINK)
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