While tariffs remain a concern, the key issue is the degree—which we deem moderate—of U.S. recession risk. The current global backdrop makes the U.S. dollar unlikely to strengthen. Earnings growth expectations are modest, valuations are undemanding
As corporate profit growth has slowed, we have a more balanced outlook on equity markets. Valuations are mostly well within historical norms and we’re seeing opportunities among higher growth companies with sustainable profits and cash generation.