Funds remain bearish as dollar continues its slide

asset allocation

The prospect of further falls in the dollar is leading global managers to underweight the US, says J...

The prospect of further falls in the dollar is leading global managers to underweight the US, says John Hatherly, head of global analysis at M&G. Hatherly says: "We are not inherently bearish on the US but many forecasts are for the dollar to fall further. The US stock market may do alright but a lot of that gain may be washed away." As the dollar continued to depreciate over the past year, the consensus among managers in 2004 was to underweight the US market significantly below its 53% share of the FTSE World index. "If you look at last year, it was right to be underweight," adds Hathe...