Our main convictions

Our Main Convictions

#1

Economic trends support keeping some risk in our allocation. We retain our Overweight to equity markets.

#2

We like the European and US markets, which should benefit from healthy economies and a downward cycle in rates. We are Neutral on Emerging Market equities, despite their attractive multiples, largely because of China, whose economy remains sluggish.

#3

Confirmation of upcoming cuts in policy rates and tempting levels of carry continue to support fixed-income markets. Sovereign debt is seen as a safe haven in the current geopolitical situation and also if recessionary risks emerge. We are long duration on sovereign portfolios and are neutral on high-yield corporate bond segment to neutral.

#4

We are now Neutral on the dollar's main pairs as we expect the main central banks to cut rates in synch.

Unless specified, all figures and statistics in this report are from Bloomberg and Macrobond on 19/07/2024, publication completion date. Past performance does not prejudge future performance. Investments may be subject to market fluctuations, and the price and value of investments and the resulting revenues may fluctuate downward and upward. Your capital is not protected, and original investments may not be recovered.