- Markets have already priced a lot of growth optimism, but there remains upward potential, with vaccinations now proceeding swiftly in Europe, too.
- Central banks will announce some reduction in the stimulus in a controlled fashion over the summer, but stay prudent acknowledging the risk of communication accidents amid overheating concerns in the US.
- We keep a moderate pro-risk tilt favouring Equities and Credit over longerdated Govies.
- Worries about US inflation will remain. Inflation swaps remain attractive as a hedge against them. Avoid unhedged USD exposure.