Asia Fund Manager Who Beat 98% of Peers Says Rate Cuts Not Cure
- Schroder’s Lee says markets choppy, valuations hard to sustain
- Lee adds high-dividend stocks during recent equity selloff
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Asian equity markets may face further turbulence down the road as a series of interest-rate cuts in the region are unlikely to shore up economies, according to a top-performing fund manager.
King Fuei Lee, who co-manages the Schroder Asian Total Return Fund, says there’s a risk of long-term deflation because monetary policy hasn’t stimulated investment and consumption. The impotence of central banks is mostly due to structural problems including demographic issues, income disparity and excessive debt, he said.