Markets have remained surprisingly resilient despite a fast-moving news cycle, rising geopolitical tensions and growing uncertainty around the outlook for growth and inflation. In this episode of Outerblue Convictions, host Swaha Pattanaik speaks with Monica Defend, Head of the Amundi Investment Institute, following the IMF spring meetings in Washington to discuss the structural shifts now shaping markets and what they mean for investors.
They examine the implications of a more fragile global backdrop, including the impact of geopolitical risk on oil prices, inflation persistence and central bank policy. Monica shares why the ECB and the Fed may need to keep rates higher for longer, while the Bank of Japan remains an exception. They also explore what markets may be underestimating, from the risk of a new geopolitical regime, to the potential for a disorderly repricing of US assets.
The discussion continues with a look at fixed income, equities, gold and the US dollar, as well as the importance of selectivity, quality and diversification in portfolios. With markets still pricing in optimism despite stretched valuations and persistent uncertainty, Monica explains why investment views may need to extend beyond traditional assumptions and prepare for a more demanding investment environment.
Concise, timely and highly relevant, this episode offers valuable insight for investors and asset allocators looking to understand the key macroeconomic, geopolitical and market themes shaping the second half of the year. Tune in for expert perspectives on asset allocation, central bank policy and the role of diversification in a changing world.
You can now listen to the full podcast at the link below
