“We continue to believe that the best risk-adjusted return will come from stocks and credits over the next 12 to 18 months,” Director Maya Bhandari wrote on Threadneedle.
Threadneedle also maintains a neutral view of UK cash, goods and commercial property. However, government bonds from developed markets do not appeal to the management company, with currently historically low dividends.
Threaded thread assignments did not yield the expected returns in two domains. Asian emerging markets and Japan have lagged behind both the UK and Europe.
According to Threadneedle, it is surprising that Japan and emerging Asian markets do not do better than they did. Both markets offer twice as much as Europe and the UK.
Threadneedle forecasts double-digit gains for both Asian emerging markets and Japan between 2020 and 2022.
Threadneedle also believes in US stocks, after surprising first-quarter reports. The S&P 500 companies increased their earnings by more than 50 percent year over year, which is double the expected 24 percent.
The logic relates to Threadneedle’s strategy lately, and the conclusion in Maya Bhandari’s article is to sit still in the boat, not currently changing any cards at all.