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.
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, 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?