Top Down: Security returns but earnings flat

26 April 2023

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.

When we published our last Top Down (15 March), we were in the middle of the US bank failures and the forced sale of Credit Suisse was about to occur. Thankfully, security has returned to the market somewhat faster than we would have expected.

After the mini banking crisis, the market is expecting interest rate cuts next year, but central banks have other ideas. Inflation is still high and not declining fast enough.

We are only starting to see the impact of the monetary tightening implemented last year and this will continue throughout 2023. Earnings are expected to be flat in 2023 against 2022, with more pressure to come from tighter monetary policies, this might be optimistic. In this month’s Top Down, we examine where investors might find growth. 

To explore our views, read our latest edition of  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.  

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