Assessing Risks and Pricing in Equity Markets

The chapter discusses the current state of the global economy and geopolitical landscape, highlighting the persistent uncertainty and heightened risks. It explores the risks that are well priced in by equity markets, such as interest rates and higher bond yields, while noting that a China slowdown is not well priced. Geopolitical risks are seen as a mixed bag, with some areas better priced than others. The chapter concludes with a brief mention of Taiwanese equities outperforming in the election season.