02-Apr-2017
MENA Q2 Outlook 2017

Perspectives explore investment opportunities within international and MENA markets and across asset classes.

The “Trump” rally which began on November 8th continued in February. After a brief pause at the start of the month, the vast majority of risk assets has resumed their uptrend. Unsurprisingly, most investors, including our clients and ourselves, are wondering if markets are now “priced for perfection”. This is the first topic of this second edition of Perspectives. While a pause might be due, we continue to believe that this bull market has further to go and that any pullback should be seen as a buying opportunity. Most favored assets remain those which should benefit from rising inflation (see the “Investment theme” section).
 

This year has been and will remain very much focus on the political agenda, would it be in the US or in the rest of the world. In this publication, we look at two topics related to the implementation of Donald Trump’s policies: the US tax reform and the “Trump impact” on Oil prices. The “hot topic” of the month moves to Europe, where upcoming French Presidential Election is pushing France towards the edge of the “Periphery”.

In the last part of this publication, we take a back seat from politics and shift our focus on a fascinating theme, the rise of e-commerce in the Middle East.




Perspectives explore investment opportunities within international and MENA markets and across asset classes.
 
In this edition, we share our view that investors might have to look at opportunities outside US equities in the months to come. This is precisely the focus of our monthly investment strategy (“Looking beyond US equities”) and the “Macro round-up” (“Brexit is official!). The “Hot topic” of the month is about the ETF bubble, which creates both risks & opportunities for fund managers. We then make the case for investing into Floating Rate Loans, an attractive asset class in a rising rate environment.

In the second part of this monthly publication, we share our outlook on MENA equities for the rest of the year. We also look at some seasonality trends that seem to offer an interesting arbitrage opportunity on our regional markets.

We hope you will enjoy this first issue.

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