Asia FI/FX Strategy: FOMC, Oil, Tech: July Recap in 20 Charts

Research evidence excerpt

Asia FI/FX Strategy: FOMC, Oil, Tech: July Recap in 20 Charts

Valuation Method and Risk Statement

Equity market returns are influenced by corporate earnings, interest rates, risk premia, as well

as other variables influenced by the business cycle. The outlook for any and all of these

variables is subject to change.

Risks of multi-asset investing include but are not limited to market risk, credit risk, interest rate

risk, and foreign exchange risk. Correlations of returns among different asset classes may

deviate from historical patterns. Geopolitical events and policy shocks pose risks that can

reduce asset returns. Valuations may be adversely affected during times of high market

volatility, thin liquidity, and economic dislocation.

Risks include macroeconomic variables (such as GDP growth rates and inflation), economic

slowdown, a weakening currency, global economic events, and government policy changes.

Our quantitative models rely on reported financial statement information, consensus

earnings forecasts and stock prices. Errors in these numbers are sometimes impossible to

prevent (as when an item is mis-stated by a company). Also, the models employ historical data

to estimate the efficacy of stock selection strategies and the relationships among strategies,

which may change in the future. Additionally, unusual company-specific events could

overwhelm the systematic influence of the strategies used to rank and score stocks. Past

performance is not a guarantee of future performance.

Options, structured derivative products and futures (including OTC derivatives) are not

suitable for all investors. Trading in these instruments is considered risky and may be

appropriate only for sophisticated investors. Prior to buying or selling an option, and for the