The economic outlook remains in “contraction” territory specifically with a view towards the US, where the ongoing restrictions to credit supply will continue to weigh on economic activity
Valuations are “expensive”, as equities recovered from the latest bout of volatility. We continue to prefer cheaper regions, such as the UK and Europe, over more expensive US equities.
Momentum for equities has remained positive for more than three months, based on the 10-months moving average metric that we favour.
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 21/04/2023, publication completion date.
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.
