Multi-asset allocation requires flexibility in the face of multiple scenarios

Recent events have made for an uncertain future. Crises in the banking sector have met with an uncertain inflationary environment and higher systemic risk. This quarterly edition of Simply put suggests that markets are heading towards four potential scenarios, given the macro picture, and explores how investors can prepare and adapt. Key topics include:

• Markets are heading in one of four directions: towards a soft landing, no landing, a hard landing, or stagflation
• What are the average expected returns of equities, sovereign bonds and credit, for each of these four macro scenarios?
• Each scenario comes with different market implications. What are the risk-based allocations that correspond with the four outcomes?
• How investors can adapt to a shifting economic landscape and the topics of interest that are currently informing our research 
   

For more, please read the Q2 2023 issue of Simply put using the download button provided.

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