Barclays' Hobbs Says 'Manically Happy' Markets Don’t Reflect Reality

Barclays Investment Solutions is adjusting its market strategy by reducing developed market equities for the first time since 2012. William Hobbs, CIO, discusses the current market sentiment, which is overly optimistic compared to the economic reality. Despite low recession risks, profit growth is expected to be modest. The focus is on being agile with equities, especially in the US, while maintaining a positive outlook on emerging markets, particularly China. The Chinese government's ability to stabilize the economy is highlighted, despite challenges in policy transmission.

What are the main risks and opportunities identified by Barclays Smart investor CIO William Hobbs for the next three to six months?

How did the performance of U.S. stocks in December compare to January, according to William Hobbs?

What is William Hobbs' outlook on profit growth in the U.S. and developed markets for the year?

What sentiment indicators does William Hobbs mention, and how do they relate to market performance?

Why does William Hobbs express confidence in the ability of Chinese policymakers to stabilize the economy?