Crisis Memories Return in Vulnerable Markets

Friday 31 March 2023

Global Investment Views, Equity, Fixed income

   

Crisis Memories Return in Vulnerable Markets

April 2023 | March brought a wake-up call to markets after a complacent start to the year. The trigger was the failure of Silicon Valley Bank and other US regional banks, followed by that of Credit Suisse in Europe. The repricing of core yields and changes to market expectations regarding central bank actions have been massive in both the US and Europe. Bond volatility reached the highest levels since the Great Financial Crisis, while equity volatility also spiked, but to a lesser extent.

01 |  Amundi Institute Insights: The repricing of core yields and changes to market expectations regarding central bank actions have been massive in both the US and Europe.

02 | Fixed Income: We suggest investors actively explore bonds, particularly US government bonds, to provide some stability to their portfolios at a time of tightening financial conditions in the markets and for lending standards.

03 | Equity: Investors can consider focusing on companies with strong balance sheets in the quality and value spaces. In these areas, we look at earnings potential of businesses with operational efficiencies.

Global Investment Views - April 2023

Important Information

Unless otherwise stated, all information contained in this document is from Amundi Asset Management US (Amundi US) and is as of March 31, 2023. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the author and not necessarily Amundi US and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not a guarantee or indicative of future results. Amundi Asset Management US is the US business of the Amundi Asset Management group of companies.

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