Rethink market assumptions, including those related to emerging markets: HSBC Asset Management executive

[SINGAPORE] Policy uncertainty and the fragmented economic leadership prevailing in today’s markets suggest that this is a good time for investors to reassess long-held assumptions, including those regarding assets traditionally seen as safe havens, said Joseph Little, HSBC Asset Management global chief strategist.

“We think some of the rules that have been successful and worked for investors in the recent past might need to be revisited or tweaked slightly. It’s always shades of grey; never black and white. There’s a nuance now that needs to be understood by investors.”

An example of a shift is what Little calls the “G-zero economy” – that is, the global economic leadership is no longer confined to the G7 or G10, which are groupings of industrialised economies.