Before the Investors’ Outlook publication goes into a summer intermission, the moment many investors waited for finally arrived, with the Fed hitting the brakes in interest-rate hikes. We now expect one more hike at most, with cuts following in early 2024.
The Multi Asset experts stand by their expectation that a US recession is coming but see it materializing later than expected due to a resilient consumer, boosted by a strong labor market, and accumulated pandemic savings.
Against this backdrop, as well as our expectation for inflation’s continued decline and a first rate cut early next year, we find respite in our portfolio positioning and consider all previously expressed views up to date.
Our colleagues in the Quality Growth Boutique assess the fallout of the US banking crisis and share their views on how a search for quality could provide resilience.
