Monthly Review, Asset Allocation & Outlook | October 2023

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Monthly Review, Asset Allocation & Outlook | October 2023

November 19, 2023

It gives us great pleasure to share the October 2023 issue of Daman’s Monthly Review, Asset Allocation & Outlook.

Highlights of the month:
1. Risk assets witnessed a steep decline due to rise in 10-year US treasury real yield and geopolitical escalations
2. Stronger than expected economic data in US and increased supply of treasuries drove higher the long end rates
3. MSCI All Country World Index and MSCI EM Index fell 3.1% and 3.9%, respectively
4. Barclays EM Aggregate Index fell 1.5% from widening spreads as 10-year yields flirted with 5%+ levels
5. UST 2YR rose 4bps to 5.1%, while UST 10YR added 36bps to 4.9%, inversion further improved to -16bps
6. Gold rallied 7.3% on its safe haven appeal
7. MENA equities fell with S&P Pan Arab Composite Large Mid Cap Index down 4.3%
We are overweight on fixed income and neutral on equities

Daman Investment is regulated by the Emirates Securities and Commodities Authority (SCA).