The Desynchronization of the Cycle

Tuesday 28 June 2022

Global Investment Views, Equity, Fixed income

   

The Desynchronization of the Cycle

July 2022 | Dramatic price action has taken place over the past weeks in equities and bonds, following hot inflation prints, central bank actions and rising concerns over economic growth. Against this still highly volatile backdrop, investors should stay diversified and avoid adding risk as the market repricing, although advanced, is not over yet. This is the time to move towards high-quality areas and resilient business models that can preserve margins.

01 |   Amundi Institute Insights:  Western monetary policy has executed an impressive U-turn in the space of a few weeks, but significant monetary policy tightening will still be needed to rein in expectations about how fast prices will rise.

02 | Fixed Income: On yields, we may see some further volatility, but current levels are more attractive considering the direction of growth is down and inflation is reaching its peak.

03 | Equity: Security selection is the key to long-term returns, while we also play regional divergences and a preference for the US and China in the near term.

Global Investment View-Desynchronization of Cycle-July 2022

Important Information

Unless otherwise stated, all information contained in this document is from Amundi Asset Management US (Amundi US) and is as of June 28, 2022 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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