Every month, our Asset Allocation Committee meets to discuss and debate our market outlook. How has our asset allocation changed month-on-month? Here Sebastian Orsi CFA, Senior Research Analyst, presents our views.
It has been a period of negative returns for asset markets since our last edition of Top Down. European bonds declined by 1.1%, while global equities declined by 4.3% in euro terms.
US and European central bankers have indicated a pause in rate hikes seems appropriate. Yield curves have steepened as longer duration bonds have sold off, while the front end of the curve is relatively stable in the US and Europe over the last month.
More recently, geopolitical issues have flared, pushing up oil prices and raising future growth and inflation risks. Government bonds rallied somewhat, playing their typical safe-haven role in risk-off episodes.
How has this impacted our market outlook, and how has our asset allocation changed month-on-month?
To learn more, read our latest edition of Top Down.
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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, September 2023: much ado about nothing?
- Top Down, July 2023: A Soft Landing in the US Still Possible
- 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