We are lining up to raise our equity weight. We emphasize that we have a limit of 20 percentage points and will not be fully exposed when we execute the allocation change. We will publish an update of the TAA publication when appropriate along with an update regarding developments in China.
The primary reasons are, 1) continued (although slow) improvements in financial stability, 2) commodity prices, 3) the global policy response (including in particular recent actions in China – specifically the turn in the monetary policy stance and the change in policy towards the housing sector).
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