Investing in emerging Asia amid rising global tensions

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Europe reaches tipping point Tensions between the US and China are heating up and the European Union is facing increasing pressure to choose a side in the wake of COVID-19. That’s the view of Principal Global Investors Chief Strategist Seema Shah. “China is increasingly considered a strategic rival to the West. Since China was accepted

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Views on COVID-19 – mounting concerns around credit triggered a cascade of indiscriminate selling in equity markets

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“Investors began 2020 with high hopes for strengthening global growth, but soon expectations for returns were dashed by overextended valuations and pockets of geopolitical risk. They began to re-evaluate risk, preparing for elevated volatility and lower returns. In early February, worries quickly turned to COVID-19, and a vicious circle began forming on March 12, 2020.

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Short and Sharp: Have markets developed immunity to the coronavirus?

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Principal Global Investors Chief Strategist, Seema Shah addresses the ongoing impact of coronavirus. “2020 to date has been no stranger to sharp sell offs, followed quickly by big rebounds. In an environment where the pace at which tail-risks can affect asset prices is elevated and where there is still plenty of angst, surrounding not just

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Ongoing US-Iran tension could boost energy stocks despite lacklustre global outlook

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Financial markets’ quick recovery following US-Iran tensions may be short lived and punish investor returns, though a renewal of tensions could increase the appeal of energy stocks. Principal Global Investors Chief Strategist Seema Shah said: “While geopolitics are difficult to predict at the best of times and both sides have reason to avoid further turmoil,

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No positives in going negative for central bankers, says Principal Global Investors

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President Trump has been pushing the Federal Reserve (Fed) to consider cutting policy rates below zero in an effort to stimulate growth and weaken the dollar, however his stance hasn’t gained support amongst other central banks or the Federal Open Market Committee (FOMC). According to Principal Global Investment Strategist, Seema Shah, the rapid spread of negative yielding

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Is this the momentous reversal?

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“Suddenly, there appears to be a glimmer of light. Expectations for a rebound in growth, nurtured by thawing U.S./China trade relations, better Brexit news, and global monetary easing have all boosted risk appetite. Global sovereign bonds have sold off sharply, with U.S. Treasury yields up some 30 basis points in one week.” Writing in a

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Short and Sharp: Everything is not okay

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Another tweet, another big market move. Last Friday, as many investors were making their peace with reallocations towards expensive safe havens, defensives, and higher quality assets, President Trump turned things on their head again by tweeting that he had decided to suspend tariffs on Mexico (announced a mere week earlier). Risk assets promptly rallied, but

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Trump’s First Month: The Global Impact

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On January 20, 2017, Donald J Trump was inaugurated as the 45th U.S. president. The implications of his subsequent actions vary across the globe. Principal Global Investors’ Chief Global Economist Bob Baur, Global Investor Strategist Seema Shah and Portfolio Manager Binay Chandgothia hold different views on Trump’s first month in office, but agree that the

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