Choppy, not murky
In this latest issue of our monthly ‘Market Perspectives’, the experts of our Macro & Market Research Team focus among other topics on:
- A prospective economic boom into spring/summer, the clearing of tail risks and an impending US fiscal stimulus still bode well for risky assets.
- Yet with parts of the markets looking frothy, correction risks require more vigilance. Elevated Covid-19 cases in Europe and tighter lockdowns on new mutations may test investors’ recovery hopes. A looming spike in US inflation may test central
banks’ yield curve control and valuations alike.
- We retain our pro-risk tilt, but slightly trim Credit and Equity overweights. Setbacks may offer buying opportunities into the spring economic acceleration.