Tightening pain

In Short

Central banks’ (CBs) hawkish message at Jackson Hole could hardly have been more striking. Selective dovish remarks of Fed Chair Powell back in July (mulling that a slower pace of tightening may be appropriate “at some time”) had sparked an interim summer rally.
Market Perspectives

Highlights:

  • Hawkish speeches at Jackson Hole have poured cold water on nascent hopes that policy setters may blink soon amid rising recession risks.
  • Equity valuations and (thus far resilient) earnings will face stiffer headwinds into winter, with a recession in Europe looming amid an energy crunch and higher rates.
  • Investor positioning remains very bearish, leaving scope for selective bounces. Yet we still favour an underweight in riskier assets. Strong demand for the stretched USD is unlikely to reverse soon.
     

Read the full publication below

Tightening pain
Picture

Generali Investments, all rights reserved. This website is provided by Generali Investments and is considered as a marketing communication and financial promotion related to the products and services of the following companies belonging to the Generali group: Generali Investments Partners S.p.A. Società di gestione del risparmio, Generali Insurance Asset Management S.p.A. Società di gestione del risparmio, Generali Investments Luxembourg S.A. and Generali Investments Holding S.p.A. (hereinafter jointly, Generali Investments).