Bottom Line

The economic outlook remains in “contraction” territory specifically with a view towards the US, although labour markets and consumer sentiment are not reflecting any recession worries.
Valuations are “expensive”, driven by a fairly narrow market rally. We are focussing on sectors with more attractive valuations where possible, positioning portfolios for a broader recovery.
Momentum for equities has remained positive as prices continued above their 10-months moving average metric that we favour. This is a strong bullish signal in the short term.
Sentiment in markets remains in “neutral” territory as equity fund flows continue to recover amidst receding fears of a hard-landing scenario for the global economy.

As ever, we are constantly monitoring markets. Should conditions change, particularly with regards to the economic regime or signals from our valuation, momentum and sentiment framework, we will adjust our asset allocation accordingly.

In accordance with the regulations in force, we inform the reader that this document is qualified as a promotional document. Unless specified, all figures and statistics in this report are from Bloomberg and Macrobond on 13/07/2023, publication completion date.