We have recently published a full commentary which includes a review of recent financial market results, our assessment of the macro backdrop, and an update on portfolio strategy.
Most asset categories have experienced gains so far this year as financial markets have been relatively calm. This is in sharp contrast to the surge in volatility experienced in 2020 as the spread of Covid-19 forced global economies to shut down and caused markets to plummet. The economic rebound thus far has been stronger than most anticipated, but US growth and policy support have likely peaked. Uncertainty remains high and the spread of the Delta variant poses a risk to the outlook. Yet, our base case assumes a continued global economic recovery transitioning to a more moderate pace being supported by still-accommodative monetary policy. This backdrop should continue to underpin corporate earnings and risk assets, but valuations are generally stretched.
Please click here to read our full investment commentary.