The European economy is in for a rocky ride
Portfolio Manager Alex Holroyd Jones and Co-Head of Multi-Asset Growth Iain Cunningham discuss why they believe the eurozone is in for a tough time, and the opportunities arising from this.
19 Aug 2021
Global Macro Allocation
The European economy entered 2023 amid a wave of optimism following a challenging 2022. However, there is now increasing evidence that growth is stalling, but the market has not reacted. Alex Holroyd-Jones and Iain Cunningham explain why the team has become more bearish towards the eurozone.
Reports of the demise of the US dollar as the world’s reserve currency have been numerous over recent years. Yet its status remains intact even though 2023 hasn’t been kind to the greenback. US interest rates show signs of having peaked as inflation abates, but is the dollar weakness as simple as that?
In this edition, Iain Cunningham and Michael Spinks outline their cyclical growth view, and explain why all the early indicators point to a recession – despite the market looking in the other direction. Sahil Mahtani takes a closer look at artificial intelligence, which holds much promise for modern society, but whose adoption needs to be carefully managed. Finally, we close with a succinct summary of our higher conviction asset class views, beginning with equities, moving on to fixed income, currency and closing out with commodities.
The poor performance of government securities in 2022 and the write-down of Credit Suisse’s AT1 bonds should lead investors to question the defensive qualities of their fixed income holdings. Traditionally, bonds have been seen as ‘safe’ and equities as ‘risky’, but this does not always hold true. Jason Borbora-Sheen and Ellie Clapton are back on the desk to discuss why they think investors need to think beyond bonds for a fixed income-like return.11 minutes
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