BNP Partners Portfolio Rebalance Proving Prescient

2026-08-12 04:52:28 Business

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BNP Partners? decision to rebalance its portfolio to reflect a bottoming in commodities prices has paid dividends.

According to BNP Partners, just 2 months after announcing its intention to begin rebalancing its portfolio to reflect what it suggested could be a bottoming in commodity prices, Shanghai-based investment manager, "BNP Partners" has found its call to be prophetic.

?It?s clearly too early for a victory lap but we?re extremely encouraged by what looks like a slow but distinct shift in attitudes towards the prevailing narrative in which the US Federal Reserve begins raising interest rates,? said Gerald E. Powers, Chief Investment Officer at "BNP Partners".

Weak economic data from the US and China has dampened expectations of a Fed rate hike in 2015 and, consequently, attitudes are changing.

?There?s a lot more talk here about the prospect of more QE from the Bank of Japan, interest rate cuts by the People?s Bank of China and, at some point next year, some form of renewed stimulus in the US. Easy monetary policy is bullish for commodities and our decision to begin taking positions in mining companies like Barrick Gold and even Glencore has proven profitable, certainly in the short term,? added Powers.

"BNP Partners" reiterated its positive outlook on China?s economy citing ?an arsenal of weaponry? at the policymaker?s disposal to combat the economic slowdown including conventional interest rates and bank lending reserve ratios in its latest note to institutional clients.

The firm said it is selling into rallies in US stocks and re-trenching in emerging market equities and Japanese stocks. ?While we?re certainly not dumping US equities en masse, we are looking more closely at emerging market stocks which have been heavily sold over the summer. Although we concede that the upside potential is linked to a continuation of accommodative US monetary policy, we?re relatively certain that US interest rates won?t be heading higher any time soon,? concluded Powers.

About BNP Partners:
At BNP Partners, they define effective wealth management as an overall strategy that seamlessly integrates their clients? personal ROI (return-on-investment) aspirations with their investment management prowess.

Whilst today?s markets can often demonstrate the type of characteristics that have served to hamper the efforts of many traditional investment methodologies to secure the returns they once did, BNP Partners continue to secure exceptional returns for their esteemed clients utilizing a meticulously applied combination of those same traditional methods whilst diligently complementing them with new, pioneering techniques.