Disinflation, stable 7-10 year sovereign yields, stronger-than-expected economic growth and AI euphoria lead to risk-on rally, but downside risk remains

Key Highlights:

  • Contradictions and a mixed picture
  • Stay short or long duration? Fixed income, particularly investment-grade credit gains appeal 
  • Big changes in equity leadership
  • Infrastructure and commodities for diversification 

Published quarterly, this report covers:

  • Key macroeconomic influences and their implications for financial markets
  • Core drivers across asset classes – and what they are indicating
  • Cross-asset analysis – expectations, risk premiums, return and risk, correlations and more
  • Implications for asset allocation and portfolio construction
  • Market analysis provided exclusively via our indices, and Refinitiv and Lipper flows data – enabling apples-to-apples comparisons across asset classes and global markets

Webinar – Changes, risks and opportunities in global markets: asset allocation implications - Thursday June 22, 2023 3PM BST / 10AM EDT

Indrani De, Head of Global Investment Research at FTSE Russell explores cross-asset investing in our new world of higher rates and lower growth, touching upon key themes such as:

  • Changes in the macro economic backdrop that will impact asset allocation
  • Increasing dispersion and de-synchronisation in the outlook across geographies
  • Current trends within equities including US vs ex-US, diversification benefits between Developed and Emerging countries, and why Developed Europe and Japan are doing so well
  • Current trends within fixed income – across the credit spectrum and geographies
  • The current situation in absolute and relative terms for fixed income and equity

Watch now

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