Asset allocation video – Long Covid


Headwinds ahead: worsening supply chain and labor market bottlenecks slowed the recovery and the impact of the virus persisted. As a result, expectations for GDP growth in the eurozone and the United States in the near term have fallen, while inflation expectations have risen and markets have had to adjust their views on what central banks are likely to provide.

In the near term, we fear that confidence in the growth outlook may wane, especially given China’s weakness, “stagflation risk” and concerns about “margin squeezing”. With equity markets nearing all-time highs, we see more potential headwinds than tailwinds ahead.

Watch our monthly asset allocation video with the Chief Markets Strategist Daniel Morris for more analysis and our positioning in the different asset classes.

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 opinions and make different investment decisions for different clients. This document does not constitute investment advice.

The value of investments and the income they generate can go down as well as up and investors may not get their original stake back. Past performance is no guarantee of future returns.

Investment in emerging markets, or in specialized or small sectors is likely to be subject to above-average volatility due to a high degree of concentration, greater uncertainty because less information is available. available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).

Some emerging markets offer less security than the majority of developed international markets. For this reason, portfolio transaction, liquidation and custody services on behalf of funds invested in emerging markets may involve higher risk.


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