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Opto Sessions: Fahad Kamal on what’s happening with US equities

Fahad Kamal is the chief market strategist at Kleinwort Hambros, which is the UK private banking and wealth management division of Société Générale. Since joining the firm in 2012, he has helped to develop its macroeconomic view and translate this into a powerful investment strategy.

Kamal, who also chairs the Investment Committee at Kleinwort Hambros and sits on the Private Bank Global Investment Committee at Société Générale, previously worked for the US Agency for International Development and the RiskMetrics Group.

The current volatility in global equities has given many pause for thought, Kamal explained.

“We are generally cautious on the markets right now. We are slightly underweight on equities at the overall asset allocations level,” Kamal told Opto.

However, this is not the case across the board. “Within regions, we are overweight towards the US, which has obviously been a good place to be for a very long time and especially including the last few crazy months that we’ve had and that remains the case,” he said.

This viewpoint, he says, is quite clear and evidenced by the US market’s dramatic fluctuations over the past three months.

 

For more detail on the factors explaining Kamal’s position, listen below.

 

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Kamal explained how actions by the US Federal Reserve have helped boost liquidity.

“The goal has always been to maintain price stability and to maintain employment. Obviously, to do both of those things you need to avoid a huge, craterous recession,” Kamal explains.

He explains that when the Fed began to see markets freeze they flooded the market, causing a “huge tide of liquidity to make asset prices rise as a by-product”.

 

Listen to the full interview and many more like it, on Opto Sessions.

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