A central bank pause supports the case for bonds. Investors will have to assess the inflation path and the earnings outlook moving into 2024, in the search for opportunities in equities.
A look back at the first half of 2023
Over the last months, investors were faced with an environment of low growth, high inflation and tighter global financial conditions. Despite the challenging macro backdrop, markets have proven more resilient than expected.
Uncertain growth path calls for allocation to remain defensive
As we enter the second half of 2023, investors are likely to face an environment of further deceleration in global economic activity and see major policy interest rates reach their peak.
The uncertain macroeconomic outlook and weak corporate earnings growth call for allocations to remain cautious as upside is uncertain and downside risks persist, while risky assets valuations are expensive.
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