The company is broadly overweight on most Asian currencies and remains optimistic on the long-term prospects of Asian equities. However, Amstad expects further short-term rate cuts in view of worsening economic conditions, which in turn will lead to yet more increases in the cost of long-term borrowing rates.
ôThe reasons for a relatively rapid deterioration in the global macroeconomic outlook are two-fold,ö says Amstad. ôWe are witnessing the bursting of two bubbles simultaneously the first is the US housing bubble, with house sales and prices falling sharply and the second is...
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