The US wants to raise rates but shouldn’t, China wants to lower rates, but can’t. It’s a tricky investment landscape in 2016. One of the big concerns for investors continues to be Quantitative Easing (QE), with the wind-back in the US and expansion in Japan and Europe. “In the early stages of QE there was a sufficient risk premia to attract investors to invest in these other assets. But those assets have now been bid up to the extent that attractiveness no longer exists. So it’s a little bit like pushing on a string, QE is ineffective at stimulating demand now, but the corollary that it’s more effective at reducing demand when it’s wound back. That’s where we are today.” As a result of these concerns, we’re continuing to hold a large portion of cash in our funds. Watch this week’s Video Insight for Roger’s views on the US and China, and how they affect Australian investors.