Month-end thoughts – Westpac

With the month of January now almost behind, Analysts at Westpac offer insights on strategies that could help rebalance equity portfolios going forward.

Key Quotes:

"Month end thoughts - MSCI World is up 1.55% to 30 Jan 2017. This means index managers will be increasing local currency hedges vs the MSCI.” 

“In terms of rebalancing, the US equity market had the best January (to date) up 2.02%. The UK had the worst performing equity market, falling .32%”.

“Australian equities were next worst, rising .11% in January (to date). This implies buying of both GBPUSD (mainly) & AUDUSD (secondly) in order to rebalance equity portfolios. Similar story in Cad and Nok Overall, this should be a subdued month end."