Asian income
A shot in the arm Equally , there are more positive signs for Asia in the near term . Oh says that corporate balance sheets remain strong , especially relative to the West , with companies running lower levels of debt . “ That ’ s a good position to be in at a time of higher interest rates and uncertainty ,” she adds . “ It reduces refinancing risk and provides management with options .” She also believes the region as a whole should benefit from China ’ s reopening : “ We have seen retail sales and travel data improving and there is still a large excess of savings to be spent ,” she continues . “ At the same time , expectations have been pulled back and valuations are very reasonable .” While Asia has underwhelmed over the past decade , Wall warns investors against looking in the rearview mirror . “ The trends that have held back Asia have started to unwind , the capital market assumptions for the US are far less bullish for the next 10 years versus the last , and China has begun to open up ,” she says . “ A well-diversified investment portfolio should have both developed and emerging market exposure .”
Issue 95 - May 2023 / 43 /