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
This is close to being the longest economic expansion on record. Nobody knows exactly when it will end, so it’s worth considering what investments could rise in value when equities and other risk assets fall during the next downturn.
Central banks across the globe recalibrated their policy stance in the first week of May, making it clear that inflation is not the sole driver of their decisions. What does this suggest for the future direction of monetary policy?
Despite the recent resurgence of growth worries, we maintain the view we expressed in February that Chinese growth will accelerate this year. This should be supportive for fixed income risk assets, especially if higher growth feeds through to other region
Seeking income in a low rate environment has seen investors search for yield in riskier assets. While the risk associated with higher yielding investments can’t be eliminated, we look at three ways in which that risk can be reduced.
Credit markets have enjoyed a strong march upwards, supported by robust technicals and a broadly positive fundamental backdrop. With issuance set to pick up, could now be the time to take some chips off the table?