We believe the lagging effects of economic tightening by central banks will lead to a further deceleration in growth, characterized by a mild US recession and anemic growth in Europe. With an uncertain economic path ahead, investors can potentially strengthen their portfolios with a series of opportunities.
With bond yields back to historical levels, fixed income investments have returned to their traditional role as sources of income.
Careful selection is key to finding equities that could be poised for outperformance.
To seek reduced portfolio risk and increase return potential, investors can extend the geography of their portfolios into both developed and emerging economies.
As we continue on an uncertain path to growth, we call for caution throughout the second half of 2023.
View five main takeaways from our midyear investment outlook:
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Read Amundi's midyear investment outlook
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We believe intermediate, high-quality bonds remain compelling due to their historically elevated yields, longer duration profile and negative return correlation to equities and other high-risk assets. Read our full paper, Why Investors Should Consider a Bond Allocation |
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Against a backdrop of risky equity markets, we believe investors can potentially generate income and capital appreciation by employing a global, multi-asset approach. Read our full paper, A Multi-Asset Approach to the Income Challenge |
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With bond yields back to historical levels, fixed income investments may return to their traditional role as sources of potential income and diversification to help manage risk in a portfolio. Our range of funds can help investors manage the risks associated with fixed income investments as bonds appear ready to resume their important position in portfolios.
In the current environment of high levels of inflation and interest rate rises, we believe investors should consider equity investments that seek to provide a unique combination of structural growth potential, quality, stability and relative valuation support. Careful selection is key to finding equities that could be poised for outperformance.
After a volatile year in 2022 due to the Ukraine war and rapid inflation, geographic diversity is again a valuable form of diversification. To help reduce portfolio risk and increase return potential, investors can extend the geography of their portfolios into both developed and emerging economies.
*Diversification does not assure a profit or protect against loss.
EXP-2024-10-10-ADID-3134307-1Y-T
