Tight Race

 

In October 2024, three significant events influenced the global market: the upcoming U.S. election, China’s economic stimulus measures, and heightened geopolitical tensions. With the U.S. election set for early November 2024, investors are closely watching potential impacts such as increased tariffs on several trading partner countries and the likelihood of higher bond yields, especially if Trump secures a win. Rising U.S. bond yields have driven investors back to the US market.

Meanwhile, China has introduced both monetary and fiscal policies aimed at achieving 5% growth. The People’s Bank of China (PBoC) lowered the benchmark interest rate by 25 basis points to 1.75%, introduced a swap facility for securities and insurance companies to repurchase shares, offered credit support to local governments for purchasing unsold properties, and reduced the minimum down payment on second homes from 25% to 15%. Additionally, the government issued new loans to provide direct cash assistance to low-income citizens. These measures have renewed investor interest in China, prompting a shift back to Chinese markets from investors who had previously been underweight in the country.

The final factor is the escalation of political tensions in the Middle East, which has created lasting challenges for the global economy. This situation has led to rising commodity prices, particularly in oil, and strengthened the U.S. dollar against other currencies. Global investors have adjusted their portfolios, reallocating away from oil-sensitive markets.

Despite these challenges, the U.S. economy appears resilient as 2024 comes to a close, providing investors with opportunities amid a positive outlook. Additionally, a relatively strong Rupiah presents another favourable prospect for holding foreign assets.

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EQUITY FUND
MGSED A	MGSED invests in Sharia-compliant Equities Abroad listed in the Sharia Securities List. Categorized as a Long-Term investment with high risk. Investors bear the risk associated with the equity portfolio.
MASED A	MASED invests in Sharia-compliant Equities in Asia listed in the Sharia Securities List. Categorized as a Long-Term investment with high risk. Investors bear the risk associated with the equity portfolio.

 

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The opinions expressed in the article are for general informational purposes only and are not intended to provide specific advice or recommendations for individuals or specific mutual fund or investment products. It is intended solely to provide education about the financial industry. Views reflected in the content may change at any time without notice. All performance data and investment returns mentioned in this article cannot be used as a basis for calculation to buy or sell a mutual fund. This data is performance records based on historical data and is not a guarantee of future mutual fund performance. Investment through mutual funds carries risks. Investors are required to read and understand the prospectus before deciding to invest through mutual funds.

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