Robeco Institutional Asset Management B.V. (Dubai office) is regulated by the Dubai Financial Services Authority (“DFSA”) and only deals with Professional Clients and does not deal with Retail Clients as defined by the DFSA.
Neither information nor any opinion expressed on the website constitutes a solicitation, an offer or a recommendation to buy, sell or dispose of any investment, to engage in any other transaction or to provide any investment advice or service. An investment in a Robeco product should only be made after reading the related legal documents such as management regulations, prospectuses, annual and semi-annual reports, which can be all be obtained free of charge at this website and at the Robeco offices in each country where Robeco has a presence.
Robeco remains cautious on risky assets following a tumultous first few weeks of the presidency of Donald Trump.
The biggest surprise for the New Year was not the fact that Trump turned out to be as erratic and vocal as he was during the campaign trail, but rather that risky assets have chosen to ignore the alarming headlines we have seen so far. Either this means that markets have become too complacent, or the headlines have been one-sided in expressing the risks (trade wars), while ignoring the potential gains (tax cuts).
It is easy to sketch a horrible meltdown scenario right now, but the simple fact is that underlying economic data has surprised on the upside, with earnings bottoming out, and that is enough to explain the current upward drift in stocks.
We remain cautious on an overall risk stance, and prefer to look for relative trades right now. On balance we have put up a relative bond trade (long US, short France) and moved to an overweight in emerging market debt as well as the US dollar.