Volatility Doesn’t Warrant Significant Equities Allocation, Fowler Says

The video discusses the performance of portfolios at the start of the year, with managers achieving significant returns. It explores strategies for the rest of the year, emphasizing the need to adjust equity allocations due to market sentiment and volatility. The focus shifts to emerging markets and local currency debt as preferred investment strategies, considering the dollar's strength in the current market cycle.

What dilemma do portfolio managers face after achieving high returns early in the year?

• How to maintain their current returns

• Whether to diversify into new markets

• Whether to increase their equity positions

• How to manage their portfolios for the rest of the year

What is the expected trend for equity returns over the next 12 months?

• High double-digit returns

• Mid single-digit returns

• Stable returns with low volatility

• Negative returns

Why is there a need to reconsider significant allocations to equities?

• Because of increasing inflation

• Due to high market volatility

• Because of low interest rates

• Owing to strong economic growth

What strategy is being adopted regarding equity positions in emerging markets and China?

• Avoiding these markets entirely

• Increasing equity positions

• Maintaining current positions

• Trimming equity positions

Why is emerging market local currency debt favored in the current market cycle?

• For its low volatility

• Because of strong economic growth in emerging markets

• Due to its high returns

• Because of the weak dollar