Performance Review: October 2020Our thoughtsUncertainty over the US presidential election, failed Brexit deals and the re-emergence of COVID-19 in the US and Europe have caused the market sell-off in October.
However, the market in Asia fared much better as there were no political events in this region. The pandemic remains a threat, but the number of new cases did not rise sporadically like in the US or Europe. Hence, investors saw fewer risks and bought more assets in Asia. That's why the Asian market, notably China, had outperformed the US and European markets in October.
By investing in MYTHEO, investors will have a share of benefits from the positive performance in China and the Asian market. MYTHEO's Growth portfolio invests in China through Large Cap China ETFs (FXI) and Hong Kong shares (EWH), which consist of companies that operate in China. Besides, MYTHEO also holds the Pacific ETF (VPL) that give not just additional exposure in China but also exposure to other pacific countries such as Japan, South Korea, Australia, Singapore and New Zealand. In MYTHEO, all these are made possible because of the geographical diversification that is spread across more than 80 countries.
On US politics, Joe Biden of Democrat was declared a winner in the US presidential election. As highlighted in our previous article, ‘Does the US Presidential Election Affect Your Investment?’, whether the President is a Democrat or Republican matters the least to the financial market. The US economy is huge and complex and government policies are just part of it. All monetary policies are taken care of by the Federal Reserve, which is independent from the President's office.
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