Global Asset Allocation Strategy July 2019: Navigating geopolitical currents

Michael Livijn, chief investment strategist.
19-06-28 14:20 | Markets and investments

The wait for Godot, or the global economy, continues. While we see some signs of a stabilisation, we continue to question the potential for an acceleration. The trade war and its secondary effects are definitely in play,  and this is particularly true in Asia/China but also in Europe where the problems in the manufacturing sector persist. In short, the global economy is treading water at the moment and the expected recovery during the second half of the year hasn’t materialised yet.

The counterweights to the trade and geopolitical risks in this scenario have been the central banks. This is particularly true for the U.S. Federal Reserve (Fed). The changed stance in December last year was followed by a strong signal in June that the Fed is ready and willing to support the economy. Consequently market expectations are high, almost four rate cuts in the coming 12 months have now been priced in – beginning in July. As risky assets have had a great journey this year the market is obviously relying on the ability of the central banks to sustain the economy and the cycle.

Explore the July 2019 edition of the Global Asset Allocation Strategy (pdf, 1 MB) for more information.

Oops! Accept Marketing cookies to view contents like this from Nordea

Previous blog posts

Showing 5 of 93 results

CEO blog: Staying the course, standing by our customers

About Nordea Frank Vang-Jensen

Nordea's CEO blogs about the second quarter of 2020 and the challenges faced by society and companies due to the COVID-19 pandemic.

Open Insights – podcasts for your business

Nordea podcasts

Open Insights by Nordea is your one-stop shop for financial news, business trends and tangible sustainability.

CEO blog: Happy anniversary, Nordea

About Nordea Frank Vang-Jensen

This year marks Nordea’s 200th anniversary, our CEO Frank Vang-Jensen blogs

CEO blog: Solid performance in exceptional times

About Nordea Frank Vang-Jensen

Nordea's CEO Frank Vang-Jensen blogs about the result for the first quarter of 2020 , which was published today.

CEO blog: Looking beyond the storm

About Nordea Frank Vang-Jensen

We are doing our utmost, working around the clock to contribute and help, writes Nordea's CEO Frank Vang-Jensen.

Showing 5 of 93 results