BCA September Global Market Outlook

Keypoints of BCA Research's latest Report:

• Markets are expecting too much of policymakers who are behind the curve.
• The Fed is unlikely to raise rates in September, given the recent market volatility.
• This is not just a repeat of the 2013 taper tantrum as it reflects very real concerns about global growth.
• Stay neutral on equities, overweight in Japan and Europe and underweight in the emerging markets.
• Further fiscal ease in China and additional exchange rate depreciation would be a game changer for both the emerging market and global view.
• A non-technical recovery, driven by improved perceptions of global growth, could produce a sustainable recovery in high-beta sectors such as Energy, Materials and Industrials.