Remain relatively cheap, investors stay cautious – wrongly so, as we believe
Inflation looks set to remain quite sticky, with more interest rate hikes to come. This makes for a rather challenging environment for many risky assets.
Investors began the year in quite a relaxed mood and there are some good reasons for that. But it would be premature to be too confident about the prospects for the year as a whole.
Younger investors might have been caught off guard by the recent outperformance of European stocks versus their U.S. peers. We think it may well continue.
The danger of recession is more evident now in market valuations but not in earnings forecasts
