March 2022 | The recent rise in market uncertainty has been driven by escalating geopolitical tensions, the hawkish pivot from central banks, and stubborn inflation. Collectively, these indications, as well as the effects of inflation on consumers’ disposable incomes, represent a major risk. However, financial conditions remain easy and economic growth is robust. Thus, we don’t think it is time to structurally move to a risk-off allocation. We do think investors should tactically readjust risk exposure while maintaining a well-diversified and active stance.
01 | Thematic: The invasion of Ukraine by Russian troops has caught Europe off guard, leading Western democracies and Russia to engage in unprecedented confrontation. Resulting sanctions will likely result in a deep recession in Russia, which should prevent Putin from financing a long war.
02 | Amundi Institute:Through our new Amundi Institute, investors can expect a deeper dialogue and sophisticated advice to build more robust portfolios owing to the many structural regime changes under way in areas such as inflation, the environment and geopolitics.
03 | Global Research:We are in the middle of a regime shift characterized by unprecedented inflationary forces not seen in the past five decades. The future will likely bring a harsh readjustment of the geopolitical order and higher fragmentation, the final death of globalization and the emergence of regionalization centred on new global powers.
The MSCI information may only be used for your internal use, may not be reproduced or re-disseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, noninfringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. (www.mscibarra.com). Indices are unmanaged and their returns assume reinvestment of dividends, and unlike Fund returns, do not reflect any fees or expenses. It is not possible to invest directly in an index. Unless otherwise stated, all information contained in this document is from Amundi Asset Management US (Amundi US) and is as of February 8, 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.
