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Global Investment Outlook June 2022

Xavier Baraton

Stress test: portfolio strategy for a uniquely uncertain world

Welcome to our mid-year outlook. I’m pleased to share with you the findings of our latest views on the world’s economies and markets for the months to come.

In our previous Strategic Forum in March, we expected markets to continue to struggle. We however didn’t imagine that our macro scenarios would deteriorate so much further, leading many asset classes to perform very negatively. This is why we termed this publication as “Stress Test".

The next decade will feel very different to the last. A new economic regime - stubborn inflation, higher rates and more turbulence is coming into view.

It's time to think about how to tackle these issues and think about what comes next.

Read the full 2022 Mid Year Investment Outlook

Your questions answered and what can you expect

Maria Ryan sits down with Global Chief Strategist Joe Little asking him questions from clients and finding out what we can expect in the months to come.

Key takeaways

Macro outlook: A new economic regime – stubborn inflation, higher rates, more turbulence – is coming into view. Top of mind: - How to navigate the new environment? What’s the biggest threat? Where to find opportunities? Income opportunities: Recent market moves mean more attractive bond valuations and the prospect of selective income opportunities across global fixed income. Selective thinking: We continue to focus on value and defensive stocks. But we remain alert to the possibility of another style rotation back towards downtrodden growth stocks. Adapting to a new regime: Several structural themes including de-globalisation, climate policy, and the commodity super-cycle has come to the fore.

Investment expertise

Fixed income

Multi-asset

Active equities

Sustainable investments

Risk Warning

The value of investments and any income from them can go down as well as up and investors may not get back the amount originally invested. Past performance is not a reliable indicator of future performance. Any views and opinions expressed are subject to change without notice. Any forecast, projection or target where provided is indicative only and is not guaranteed in any way. We accept no liability for any failure to meet such forecast, projection or target. The information provided does not constitute any investment recommendation in the above mentioned sectors, asset classes, indices or currencies.