Phillip ETF Model Portfolio – October 2017 November 8, 2017
October 2017 PORTFOLIO PERFORMANCE (%)
Shinzo Abe won the Japan election with a landslide causing investors to breathe a sigh of relief as status quo has been maintained. Abenomics which brought about a 140% gain in the japan equity market since December 2012 is expected to continue. This cause the Nikkei 225 index to rally 8% for the month.
As Xi Jinping consolidate power at their party’s congress in October, we believe that Xi, the global trade advocator, has created a further optimism of increasing global trade and economic growth within the regional. China, as well as Asian equity markets, should benefit from this political background and future economic tailwind.
ECB announced plans to cut the level of bond purchases by half from €60bn to €30bn per month and decided to extend the QE program through the end of 2018. Markets didn’t react negatively to the news as this wasn’t seen as a “tapering” but rather a recalibration of ECB QE programme. The dovish tone from Mario Draghi also kept European equity markets up.
STRATEGIC ASSET ALLOCATION
INSTRUMENTS FOR PHILLIP ETF MODEL PORTFOLIOS
About the author
Pei Sai Teng Investment Analyst Phillip Securities Research Pte Ltd
Sai Teng covers the global macro research. He has more than 6 years investment experience primarily in portfolio construction and asset allocation.
He graduated with Bachelor of Science in Banking and Finance from University of London.