Grand reopening

En bref

The global economy is enjoying a grand reopening. Rising infections still burden large parts of Europe and EMs (India, Brazil). Yet the vaccine champions are leading the way.

Highlights:

  • Amid the global economic rebound from the pandemic and rising US inflation concerns, upside pressures on yields will persist. The PEPP acceleration has not stopped the yield ascent, and the ECB faces a difficult June meeting; so does the Bund.
  • The Fed’s patience may stoke inflation fears, but keep real yields in check – they matter most for risky assets. Vaccination progress, large excess savings/liquidity and surging earnings keep us long risk assets (Equities, Credit) for now, and underweight in longer-dated Government bonds.
  • Discretionary positioning and equity fund inflows, however, have become stretched in parts. As the summer boom supports exuberance and vols recede, start thinking about cheap hedging.

Download the full publication below

Market Perspectives ǀ Grand Reopening
PDF
Picture

© Generali Investments, tous droits réservés. Ce site internet est publié par Generali Investments et est considéré comme une communication marketing et une promotion financière liée aux produits et services des sociétés du groupe Generali suivantes : 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. et Generali Investments Holding S.p.A. (ci-après dénommées ensemble Generali Investments). En outre, le site peut contenir des communications de marketing et de promotion financière de produits et services de sociétés faisant partie de la plate-forme Multi-Boutiques coordonnée par Generali Investments Partners S.p.A. Società di gestione del risparmio, et en particulier de Generali Global Infrastructure, Sycomore Asset Management, Aperture Investors LLC, Plenisfer Investments SGR, Lumyna Investments et Generali Real Estate S.p.A. Società di Gestione del Risparmio.