I attended a luncheon yesterday by DBS CIO Lim Say Boon, JP Morgan CIO Richard Titherington and Columbia Research Director Robert K. In addition to the good food provided by Ritz Calton Sg, there were also some interesting discussion on the outlook of emerging and developed market going forward.
In its essence, the general focus for 2014 will be on the end of the five year force feeding experiment in the US. This event will likely have a trickling effect on all asset classes. Mr Lim said US equities will be progressively weaned off the so called "portfolio balance effect", where the Fed bought down the yields of US Treasuries, thereby driving up the prices of other asset classes. He said gradual withdrawal of liquidity will likely be offsetted by the expectations of near zero policy rate. So he overweighted Developed Market stocks.
In his view, bonds will likely continue ...
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