Pacific Horizon anticipates market shift amid US policy changes

Published 20/03/2025, 09:28
Pacific Horizon anticipates market shift amid US policy changes

LONDON - Pacific Horizon Investment Trust PLC (LSE:PHI) is signaling a potential inflection point in Asian markets, as global investors digest the impact of U.S. President Donald Trump’s policy agenda, according to a recent analysis by QuotedData. Amidst heightened uncertainty and fears of stringent U.S. tariffs on Asian goods, particularly from China, the investment trust’s managers maintain a positive outlook for Asian equities.

QuotedData’s report highlights that despite the market’s apprehension, the threat of tariffs may not be as severe as anticipated. The focus on the inflationary aspects of Trump’s policies has led to expectations that interest rates may remain elevated for an extended period.

Pacific Horizon’s management team suggests that Asia’s market advantages are being overshadowed by the current geopolitical climate. They point out that Asian stock valuations are currently very attractive, and with a decade of capital outflows, the region is now relatively free of short-term speculative investment, often referred to as ’hot money.’

Furthermore, the managers emphasize that China’s significant economic stimulus measures could mitigate some of the primary challenges facing the region. A shift in investor sentiment towards Asia could result in substantial market movements. The investment trust is positioning its portfolio in anticipation of such changes, which could potentially narrow the discount to its net asset value (NAV), currently near a five-year peak.

The information presented in this article is based on a press release statement and does not constitute investment advice or an endorsement of Pacific Horizon Investment Trust PLC or its strategies. The report from QuotedData serves as an independent analysis and is available for further review on their website.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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