An economic backdrop characterized by high risk of policy mistakes and strong regional divergences calls for a prudent stance in risk assets, especially now that markets are priced for perfection, leaving little room for any negative surprise.
We remain constructive on bonds, in particular govies and high quality credit, and we see opportunities opening up in Emerging Markets, as the dollar will likely cease to be a headwind.
This Month’s Topic: China: back to pragmatism
2022 ended in an abrupt fast-track reopening. In one month, China dropped most of its Covid-related restrictions, vowed to support the housing market more, and set pro-growth policies. We expect the Chinese economy to be separated from the global slowdown in 2023, accelerating from a low base.
You can now read the full whitepaper at the link below