The “Top Questions from our Clients” publication is a monthly periodical that posits the most important questions, answers, and portfolio implications curated from across different regions. The November edition addresses the below topics: 

• Question 1: How do we hedge against the risk of a prolonged US government shutdown?
  A prolonged US government shutdown is not our base case, but we prefer to hedge for any short-term volatility. We diversify US equity exposure across both defensive sectors and long-term growth themes, underweight US consumer staples and find protection with high-quality medium-duration USD IG bonds. Historically, shutdowns tend to delay – not wreck – activity, and markets usually recover when fundamentals normalise
• Question 2: How much did the APEC summit and the 4th Plenum ease US-China trade issues?
  The Trump-Xi APEC meeting produced a one-year tactical truce, easing near-term uncertainty and reinforcing our equity overweight stance on the US, mainland China, and Hong Kong. Structural disagreements remain, but supply chain risks should moderate. China should continue to shift its focus towards domestic demand-driven growth, reinforced by the Fourth Plenum focus on self-sufficiency, tech, and consumption
• Question 3: Can Jerome Powell’s retirement as Fed chair impact Fed independence?
  In our view, the Fed’s policy decisions will remain data-driven and largely unaffected by politics or leadership changes. Currently, we forecast one more 25bps rate cut in this cycle; more cuts might not help longer-dated bonds as the yield curve would steepen. We thus prefer medium duration USD IG bonds. In US equities, earnings delivery matters more than the Fed rate path; AI innovation should help IT and the entire AI ecosystem
• Question 4: Can emerging markets help diversify tech-heavy US portfolios?
  Emerging markets have performed well as Fed cuts, a weaker USD, easing inflation, and positive fiscal positions supported returns and attracted capital inflows. We favour mainland Chinese, UAE and South African equity markets to diversify US tech-heavy equity portfolios. We also find attractive carry in EM Local Currency debt across India, Mexico, and South Africa, and in discounted Chinese hard currency credit of short duration
• Question 5: Does the recent pullback suggest gold prices have peaked?
  After gaining roughly 53 per cent YTD, gold saw a brief pullback in late October due to stretched valuations and profit-taking. The decline was short lived though, and prices remain supported by central bank buying, global easing and safe-haven demand. We don’t see a peak but a further gradual climb and stay overweight for the medium to long term, given its diversification benefits amidst uncertainties around US shutdown and geopolitical issues
• Question 6: What are the major catalysts and risks for China’s equity rally in 2026?
  Chinese equities continue to find support from AI-driven innovation, capital expenditure, and supportive policies. While economic growth remains on track to reach the government’s year-end target, policy support is expected to focus on boosting domestic demand. So, we stay mildly overweight on Chinese equities, where valuations are fair— and adopt a barbell approach to identify domestic tech-leaders and high-quality SOEs with strong RoE