Going into year-end, and at current valuation levels, we see less opportunities for risky assets and scale equities down to neutral. The inflation narrative has shifted. Price pressures now go hand in hand with risks to output and consumer spending. We expect monetary normalisation to be very gradual, but still lead to slightly higher rates by year end, keeping us underweight on sovereign bonds. China exposure starts to be compelling from a valuation perspective, but uncertainties are too high in our view.
Read the full analysis in our latest CIO Monthly.