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Dynamic indexing suggests reducing Asia exposure

The link between a country's macroeconomics and its stock-market performance is weaker than some might think, says Swiss firm Wegelin Asset Management.
Asia may have stronger fundamentals and a more bullish economic outlook than Western countries, but investors have been jittery about the region's markets in recent weeks. And cold, hard and sophisticated calculations seem to bear out these concerns. Zurich-based Wegelin Asset Management runs a dynamic, active indexing strategy that is heavily research-driven and does not tend to make short-term tactical changes to its allocation. However, says Asia-Pacific head Robert Huber, the stra…
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