Asset Allocation Video – Recession: The numbers say ‘soon’. Or do they?

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2 AUTHORS Invest

07/11/2022 1 min read

A recession is expected to approach, but current economic conditions do not match that outlook: unemployment is low, while demand is strong as consumers catch up after a period of economy-induced parsimony. pandemic, as Maya Bhandari, head of multi-asset, explains to chief market strategist Daniel Morris.

They expect a hard landing for the economy, accompanied by soaring unemployment and a contraction in spending, but until the middle of next year. By then, corporate earnings trends could be negative to reflect recessionary conditions and credit spreads should have widened. At this point, the chances of the major central banks reversing their rate hike cycles will have increased significantly.

Watch the video with Maya and Daniel to learn more about BNPP AM’s conservative multi-asset allocation, including an underweight to European equities and long positions in Chinese and Japanese tech stocks thanks to their factor immunity. current risk.

Disclaimer

Please note that articles may contain technical language. For this reason, they may not be suitable for readers without professional investment experience.

All opinions expressed herein are those of the author as of the date of publication, are based on available information and are subject to change without notice. Individual portfolio management teams may have different views and make different investment decisions for different clients. This document does not constitute investment advice.

The value of investments and the income from them can go down as well as up and investors may not get back their initial investment. Past performance does not guarantee future returns.

Investing in emerging markets, or in specialized or restricted sectors is likely to be subject to above average volatility due to a high degree of concentration, greater uncertainty as less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).

Some emerging markets offer less security than the majority of developed international markets. For this reason, portfolio transaction, liquidation and custody services on behalf of funds investing in emerging markets may involve greater risk.

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