Fund selectors in the news: Andrea Daffara

How are risk assets reacting to current market volatility?

Despite the current market turmoil we keep a constructive view for this year on risk assets.

Short term volatility may continue over the next few months due to rising concerns about China GDP deceleration and huge debt burden; a prolonged pressure on energy and commodity prices is also a major headwind for emerging markets, especially in Latin America.

The impact of slumping energy prices on company earnings growth and default rates together with a lack of visibility around the next moves in interest rates by the Fed keep us in a ‘wait and see’ stance on US equities and HY .

Conversely, we aim to take advantage of the market selloff to build up our exposure to European stocks, especially small-mid cap. We are confident that a domestic recovery, boosted by rising consumption, cheap raw materials and a dovish policy by ECB, will not be derailed by the pain from emerging markets.

Name: Andrea Daffara
Title: Fund selector
Company: Sella Gestioni
Base: Milan

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