ESG investing in China: Considerations for sustainable portfolios
China does not stack up well on most ESG metrics. Explore our take on whether investing in China can be reconciled with investing sustainably.
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.
Despite recent weakness in global markets, many of our portfolio managers remain rather cautious about the outlook. Quality and predictability, as well as modest valuations, matter most in this environment.
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.