In spite of the recent positivism in the US markets in its second quarter investment and economic outlook, the bank’s wealth management team has advised investors to maintain a conservative tactical asset allocation for their portfolio.
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Don Silva, head of Investment Advisory & Management for Bank of the West’s Wealth Management Group said that the US markets are showing less correlation with international developed market performance, and attributed it to the economic forces.
"We also see positives from continued strengthening of corporate balance sheets, and accommodative US monetary policies. However, the current recovery is still a work in progress," he said.
Regarding providing allocations in the frontier markets and emerging markets, Wade Balliet, director of equities for the bank’s Wealth Management Investment Advisory & Management team, said: "Although there is still some hesitation around a true belief in a bull equity run in frontier markets, these commodity heavy markets have respectable valuations and growth prospects.
"Emerging markets have certainly rallied from lows in October, but opportunity remains as they have not yet recaptured the highs of 2010 and fears about a hard landing in China are easing," he further added.
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