Bottom Line

The economic outlook remains in “contraction” territory but continues to be supported by resilient activity in the services sector.
Valuations have softened slightly due to the combination of the latest sell-off and resilient earning growth but remain “expensive” overall.
Momentum for equities is positive after repeated dips into “negative” territory. We remain on the look-out for a sustained momentum in either direction to consider meaningful changes to our strategy.
Sentiment in markets has softened but remains in “neutral” territory with the US dollar strengthening in response to rising geopolitical uncertainty.

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 20/10/23, publication completion date.