The odds are still favoring taking risk, our investment strategists write in the latest edition of the Global Asset Allocation Strategy. Equities have a good chance of outperforming bonds, they argue and therefore stick to overweight.
However, given the high-strung market, the likelihood of a setback has increased and one is already underway. Without lasting effects on fundamentals, however, our investment strategists consider such pullbacks buying opportunities, they write in the report.
A slowly improving cyclical outlook and stronger earnings growth are seen underpinning the stock-market performance. Historically low yields will also continue to support both the market and the economy, although they are unlikely to veer much lower.
Interested in learning more about what our strategists think about allocation between regions? Or about their general outlook on the world economy and politics? Read the brand new February edition of the Global Asset Allocation Strategy. (pdf, 1 MB)
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Markets and investments Economic outlook
After a strong rebound on easing election and vaccine concerns, some consolidation in risky assets is to be expected.
Markets and investments Sustainability