A Complex Year Ahead
The past year has been one of positive surprises. Inflationary pressures were brought under control in most countries. US economic growth remained strong, exceeding most forecasts. Equities and credit performed well.
The past year has been one of positive surprises. Inflationary pressures were brought under control in most countries. US economic growth remained strong, exceeding most forecasts. Equities and credit performed well.
As we head towards a very consequential US election next month, we are balancing our positioning between two opposing forces. The first is the strength of recent economic data. The second is the inevitable uncertainty that comes with a change in policies.
This year has been remarkable in many respects. Economic growth in the US and parts of Europe exceeded expectations. US Inflation – which had been accelerating – appears to have resumed its downward trend. Inflationary pressures in Europe have subsided sufficiently for some central banks to have started their easing cycles. Equity markets have reflected these favourable developments.