Global economy is significantly volatile now - Konyn

GLOBAL ECONOMY IS SIGNIFICANTLY VOLATILE NOW - KONYN Cathay Conning Asset Management Chief Executive Officer Mark Konyn says we are now in a period of significant economic volatility where government and central bank policy is more difficult to predict. SHOWS: HONG KONG, CHINA (JANUARY 30, 2015) (REUTERS - ACCESS ALL) 1. SLATE, READING (English): "HOW WOULD YOU RECOMMEND CLIENTS ALLOCATE THEIR PORTFOLIOS AMID DIFFERENT CENTRAL BANK POLICIES GLOBALLY?" 2. CATHAY CONNING ASSET MANAGEMENT, CHIEF EXECUTIVE OFFICER, MARK KONYN, SAYING: "Well one thing we are absolutely sure of is that we have entered a period of much more significant volatility and much more difficult to read government and central bank policy. We are entering this period of unpredictability if you like in central bank policy. We have seen a number of central banks take actions which were both unexpected and take that action at times that weren't scheduled. And that is making it much more difficult as asset allocators globally think about where growth is going to emerge. You would expect at this stage of the cycle that for investors to pay up a little bit more for growth but unfortunately that increase in volatility is holding back that asset allocation. If we then turn to your question in terms of what that means for this region, we have seen now ten or eleven weeks consecutive of outflows from emerging markets globally, including this region, with only one or two markets benefiting from a positive flow those being India and the Philippines. I think we are going to see a continuation of that pattern India remains the favoured market, much built upon the expectations of Modi's government and reforms and changes in the economic situation there which I think is so far not disappointing investors and they are being encouraged. It is also a fact that India is standing head and shoulders above other emerging markets and there is still flow into equities given that investors are a little bit more cautious on the basket of emerging markets. India benefits from ...