“Despite reflation optimism, financial repression remains in place and Allianz Global Investors’ long-term view is that global growth can be expected to remain dull, says the firm’s global strategist Neil Dwane .. ‘With low growth and financial repression still plaguing many developed markets, investors need growth potential – which Asia is in a good position to provide, given good valuations, still-positive real interest rates and low sovereign leverage .. Increasing Western populism and trade friction [are] likely to have a smaller impact on Asia, given the growth of intra-regional trade. Moreover, China’s ‘One Belt, One Road’ initiative should, over time, boost economic development throughout the region and across its frontiers. This should increase the size of many markets in Asia, which would give corporations an abundance of choice about where to invest their resources.”
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Source: Financial Repression Authority