BCA Research - Global strategy outlook for Q3

BCA Global Investment Strategy team have published their Strategy Outlook for Q3 2015. These are the highlights: 1) Global growth should pick up in the second half of the year, but will remain too low to counteract the persistent shortfall in demand facing most major economies. 2) For now, contagion to the rest of Europe from the Greek crisis is likely to be contained. The longer-term viability of the common currency, however, is fraught with doubt. 3) Investors should remain modestly overweight global equities, stay neutral bonds and spread product, and underweight cash. 4) Within the equity portfolio, overweight the Euro area, Japan, and China; underweight most other emerging markets and the U.S. 5) The dollar is likely to strengthen modestly against the euro, sterling, and most EM currencies. The yen has reached a bottom. 6) Oil prices have further to fall. Chinese stimulus could help metals in the near term, but the longer-term outlook is grim. Gold is due for a bounce. The full report is available to BCA clients (VIEW LINK)