Market views on the economic outlook have been volatile this year: they have swung from concerns over recession to hopes for a soft landing and now centre on a Goldilocks scenario. We disagree. In our view, the effects of sharply higher central bank rates, depleted household savings, lower corporate investment and notably tougher financial conditions have yet to make themselves felt.
Watch our quarterly video with Daniel Morris, Chief Market Strategist, and Maya Bhandari, Global Head of Multi-asset. They discuss the opportunity of locking in attractive bond returns for the next five years as well as their view that downside risks to company earnings in Europe are greater than in the US.
Disclaimer
Please note that articles may contain technical language. For this reason, they may not be suitable for readers without professional investment experience. Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients. This document does not constitute investment advice. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay. Past performance is no guarantee for future returns. Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions). Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.
