Asset Allocation for October 2017

Markets growth power slowed down. Some destructive hurricanes on the South of US, aggressive actions by North Korea and Janet Yellen’s words about her willing to resume FED rate hikes before the year end reduced the demand on risky assets.

In September tech stocks were among top losers as the main suppliers of Apple, Qualcomm, Broadcom and other tech giants are based in Eastern Asia. Investors were nervous about possible new missile operations by North Korea in the region. Secondly monetary policy tightening by US FED and new tax planning initiatives by Donald Trump’s administration could lower future hi tech companies profits.

To note, European stock market showed better performance than American one because of US dollar strengths and smaller involvement in Asia region economy.

In October investors should keep an eye on China Communist party convention and for another referendum in Catalonia.

Threat and challenges in world markets:
- Monetary policy tightening by US FED
- Growing tensions between USA, South Korea, Japan and North Korea

Read more