US dollar assets set to be winners again
But Schroders execs disagree over prospects for emerging market equities
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Genevieve Cua
MANY global economies are grappling with a disinflationary or deflationary trend, which has implications for investment assets. Schroders multi-asset fund manager Remi Ajewole says the disinflationary trend, coupled with the divergence in central banks' policies, suggests that US dollar assets are likely to be winners yet again next year.
"There will be winners and losers and investors will need to identify the winners . . . We think the (US) dollar stands to win in a disinflationary trend.''
In contrast, emerging market equities are expected to suffer. Ms Ajewole was speaking during Schroders' international media conference last week. Based on her presentation, the G-10 markets grappling with disinflation include the UK, Switzerland, Australia and New Zealand.
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