Asset Class Views

Global Asset Allocation Views 4Q21

While moderating growth momentum is denting sentiment, we continue expecting above-trend global growth, and earnings upside, supported by easy financial conditions.

Global Fixed Income Views 4Q21

Above Trend Growth is still our base case, but we dropped it to 80% while raising the likelihood of Sub Trend growth to 10%. Recession and Crisis remain at 5% each. Our best ideas include corporate credit, U.S. and euro high yield, and leveraged loans.

Global Equity Views 4Q21

The outlook for profit growth in 2022 remains pretty robust. High valuations for the most popular stocks are a challenge, but many markets, industries and themes are much less expensive. In Chinese equity markets, there’s gloom but not doom.

Factor Views 4Q21

Factors were generally positive amid volatile markets; equity value, quality and momentum performed well. Merger arbitrage extended all-time highs and remains well supported.