We've recently released a short report that looks at the further signs of the slowing global economy and implications for asset management.
- Economic Cycle in Transition
- How markets have responded
- 'Air pocket' Developing in Equity Markets
- 'Looking ahead'
Further signs of slowing in the global economy have begun to shine a light in the post-pandemic world in the past quarter. For strategic investors, our message is to continue to hold their risk allocations with a view to mitigating the inflation risk to bonds by diversifying their asset class exposures.
We are living through an era most analogous to the post-war period in the 1940's that was categorised by 'financial repression' (bond yields held below the rate of inflation).
For tactical investors, our message is that they should begin to look at ways to hedge or reduce portfolio risk 'selling on strength' in Q4, as we expect an increase in cyclical risks to trade-off against complacent investor positioning by 22Q1.
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