ASSET CLASS VIEWS FROM OUR SENIOR INVESTORS
Global Asset Allocation Views 3Q 2022
Subtrend global growth and tighter monetary policy create a challenging outlook for asset markets in 2H22. We downgrade equities to underweight and credit to neutral, move to an overweight in cash and close our underweight to duration.
Global Fixed Income Views 3Q 2022
Sub Trend Growth is now our base case scenario, at 45%. We cut our expectation of Above Trend Growth to 20%, increased Recession to 25% and left Crisis at 10%. Our best idea: high quality, short-duration bonds, in particular short-dated investment grade corporate bonds and securitized credit.