Macro Monthly No painless pivot for risk assets
Global stocks staged a major rebound in July, but is the optimism misplaced? Here, the multi-asset strategy team considers the outlook for equity markets.
Highlights:
Highlights:
- In our view, the recent advance in global equities is a bear market rally, not the start of a new bull run.
- Earnings expectations do not reflect the retrenchment of goods-sector activity or reduction in household spending power.
- We believe the Federal Reserve will not shift from tightening to easing without substantial economic pain.
- Valuations are still on the expensive side, and recession risks are above-average.
- We are staying underweight stocks and using selloffs in bonds as an opportunity to increase exposure to sovereign fixed income.
Related
Macro updates
Macro updates
Keeping you up-to-date with markets
