Divergent Perspectives

With the energy crunch easing and China heading for a reopening bounce, the Euro Area will likely forego a widely anticipated winter recession, explain the Macro & Market Research Team. Yet in the US, the Fed’s fast monetary tightening may take its toll on the economy, in the form of a shallow mid-year recession. Overall, despite FOMO, the team sees little value in jumping on the bandwagon, given persistent earnings headwinds, elevated valuations and mounting signs of exuberance.