Don’t Fight the Fed
Equity markets have been in a downward trend since the beginning of the year, even though in between there have been repeated countermoves, followed by further setbacks. Inflation seems to be slowly reaching its peak, but growth concerns are now coming to the fore. This combination should support bond markets in the medium term and calm interest rates. We have therefore raised the bond quota in our portfolios to neutral. We remain cautious on risk assets and are waiting for better buying opportunities. As long as central banks continue to turn off the taps, risk assets are likely to remain in an uncomfortable situation.