Oct 17, 2015 03:10 JST

Source: marcus evans Summits

How China's Slowdown Affects Global Investors
Mike PeQueen, Managing Director & Partner of HighTower, a speaker at the marcus evans Private Wealth Management Summit 2015 discusses the slowdown in China's economic growth and how it affects global investing strategies.

NEW YORK, N.Y., Oct 17, 2015 - (ACN Newswire) - "Clearly asset allocation is still the single most important decision any private wealth manager will ever make and while there are currently many potential problems with emerging markets it should never be looked at as an all or nothing game. For the time being an underweight for emerging markets and overweight to developed markets would make sense," advises Mike PeQueen, Managing Director & Partner, HighTower.

PeQueen is a speaker at the marcus evans Private Wealth Management Summit 2015 taking place at Las Vegas, Nevada, December 9-11.

- What is a global trend investors should be aware of?

The single biggest global trend right now is the direction of China's economy and how it is growing but at a slowing pace. That slowing China theme is really what dominates all economics right now globally because so many companies in the emerging markets have grown as a result of supplying China. If China's growth is slowing down then so does their growth. Slowing China has an implication for virtually every country on the planet.

- Are any countries not negatively affected by China's slowdown?

The economy that now stands out in the world happens to be the US economy of all the developed economies. It is relatively insulated from China's slowing, in fact it does benefit in some cases from China's slowing because energy prices and commodity prices are lower and the US does not sell that many products and services directly to China. The US economy is growing and it is decoupling from the rest of the world which is slowing. The UK is also doing well, but there are relatively few countries that are not impacted negatively by China.

- Which countries are investment landmines?

There are quite a few right now due to the big unknown which is - what is the future of emerging markets in light of China's slowdown? Emerging markets for the last decades have provided above average growth with above average volatility and now that may be interrupted. So the questions are, will Brazil come out of its recession and will it grow? Will Russia overcome its political and economic problems and provide growth for the global economy? Therefore, the landmines would be the larger emerging market economies falling into recession, like Brazil and Russia that already have.

- What are some strategies to avoid investment landmines?

For two decades the orthodoxy has been investors need to have a strong allocation to emerging markets to have a high return and that may be just the reverse now. Investors must really understand what the growth outlook is for each of the emerging markets they are considering investing in.

The developed markets currently offer better return potential with less risk than emerging markets. Overweighting asset allocations to developed markets until the emerging markets can return to growth is the recommended strategy.

About the Private Wealth Management Summit 2015

The 17th Private Wealth Management Summit is the premium forum bringing leaders from America's leading single and multi-family offices and service providers together in an intimate environment for a focused discussion of key new drivers shaping the future of the industry. Taking place at Red Rock, Resort, Spa, Las Vegas, NV, December 9-11, 2015, the Summit includes presentations on maximizing wealth within the family lineage, facilitating the growth of client assets, asset allocation, and winning over the millenials.

For more information please send an email to info@marcusevanscy.com or visit the event website at www.privatewealthsummit.com/MikePeQueenInterview

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Source: marcus evans Summits
Sectors: Daily Finance, Daily News

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