A recession is expected to approach, but current economic conditions do not match that outlook: unemployment is low, while demand is strong as consumers catch up after a period of economy-induced parsimony. pandemic, as Maya Bhandari, head of multi-asset, explains to chief market strategist Daniel Morris.
They expect a hard landing for the economy, accompanied by soaring unemployment and a contraction in spending, but until the middle of next year. By then, corporate earnings trends could be negative to reflect recessionary conditions and credit spreads should have widened. At this point, the chances of the major central banks reversing their rate hike cycles will have increased significantly.
Watch the video with Maya and Daniel to learn more about BNPP AM’s conservative multi-asset allocation, including an underweight to European equities and long positions in Chinese and Japanese tech stocks thanks to their factor immunity. current risk.
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All opinions expressed herein are those of the author as of the date of publication, are based on available information and are subject to change without notice. Individual portfolio management teams may have different views and make different investment decisions for different clients. This document does not constitute investment advice.
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