Cross Asset Investment Strategy - September 2022
Friday 09 September 2022
While a global recession may be avoided, we are likely to see growth deceleration and high inflation (higher cost of living) along with regional divergences. Thus, investors should consider moving to a more cautious stance on equities particularly in Europe, but retain preference for US and for China, although to a lower extent on China. In FI, government bonds are becoming more appealing but investors should stay active and in credit there is a need to focus on high quality debt and on liquidity risks. Overall, this is a time to keep a cautious view, and stay vigilant and well diversified.
While a global recession may be avoided, we are likely to see growth deceleration and high inflation.