Are you brave enough to invest in Q4?Nick Beecroft
Q4 may have had a rather dramatic kick-of, with a government shutdown in the US and growing political tensions in Italy. But Saxo Bank’s Nick Beecroft says that “brave” investors should be able to pre-empt these events and start to “rotate out of bonds and into equities.”
The US has reached a budget stalemate, as President Obama and Congressional leaders are yet to find a solution with regards to the country's debt ceiling. But Nick thinks this "will be resolved" in Q4 and explains it’s about ignoring the bumps, and looking at the bigger picture instead.
Meanwhile, the political situation in Italy has added to market jitters. Prime Minister Enrico Letta won a vote of confidence on Wednesday. Support for Letta from Berlusconi's party was the strongest sign yet of increasing rebelliousness against Berlusconi in his "People of Liberty" party.
Nick also warns that an area worth being cautious about is emerging markets, especially the likes of India and Indonesia which were “hit hard” by the recent US tapering talks, and thinks this could happen again in December.