Every month, our Asset Allocation Committee meets to discuss and debate our market outlook. How has our asset allocation changed month-on-month? Here Bernard Swords, Chief Investment Officer, presents our views.
Since the end of June, Markets have been relatively flat with equities are up 0.4% in euro terms and fixed income markets down 0.1%.
In the global economy the regional differences which we noted last month gained further momentum. The US economy is proving to be more resilient than expected. Job creation remains strong, and this is putting a prop under consumption. The euro area and China are telling a different story.
Equity markets have been bolstered by a belief in a ‘soft landing’ for the US economy. This may turn out to be the case, but it will leave us with a US economy that is growing at a sub-trend rate with little left to lift that growth rate.
To learn more, read our latest edition of Top Down.
CLICK HERE TO READ TOP DOWN
Previous editions of Top Down
Explore some of our previous editions of Top Down to see how our asset allocation views have changed this year.
- Top Down, June 2023: Signs of Slowing Growth
- Top Down, May 2023: Cautious stance still warranted despite calm markets
- Top Down, April 2023: Security returns but earnings flat
- Top Down, March 2023: What to expect after the failure of Silicon Valley Bank
- Top Down, February 2023: Stronger Growth Data Helps to Dampen Recession Fears
- Top Down, January 2023: A New Year with Familiar Problems
- Top Down, December 2022: A New Year with Familiar Problems
- Top Down, November 2022: About-turn in markets?
- Top Down, October 2022: Bonds look attractive again
- Top Down, September 2022: Reducing Consumer Discretionary to Neutral
- Top Down, July 2022: Changing the equity mix
- Top Down, June 2022: Increasing exposure to fixed income again
- Top Down, May 2022: Inflation fears are transitioning to growth fears
- Top Down, April 2022: Repositioning for a maturing cycle
- Top Down, March 2022: What does the crisis in Ukraine mean for asset allocation?
- Top Down, February 2022: What does central banks’ hawkish turn mean for asset allocation?
