Monthly View Will the Fed Ruin the Party? Global equity and bond markets started August on a positive note, but sentiment turned as investors’ attention shifted from recession fears to Fed hawkishness. A Summer Rally? We expect stock prices to rise further during the remainder of the year as U.S. recession risks and inflationary pressures recede. Recession or No Recession. That is the Question The moment everyone becomes very negative about the economy, the risk is that it becomes a self-fulling prophecy. Brighter Days Ahead? We still think that the global economic cycle is strong enough to avoid a recession in the short term, especially in the U.S. Between a Rock and a Hard Place Fewer pandemic-related disruptions, and a stabilization in Ukraine, could set the stage for sharply lower inflation and a revival in global growth in the second half of this year. A New Era of De-globalization For the third consecutive month, most financial assets posted negative returns in March. The global equity market has been down about 6% since the start of the year. Energy Crisis, High Inflation, and Cold War 2.0. Throwback to the 1970s? Global equities faced extreme challenges in February 2022 as the invasion of Ukraine by Russia shocked the world. Everything is Different and Nothing has Changed markets change but at the same time they don’t really. Why 2022 Could Be Another Good Year for Equity Markets It’s 2022 and right on time we’ve entered a new phase of the cycle, with central banks in most developed markets turning more hawkish in the past month. Monthly View December 2021 We remain positive on global equities, although we could see sector rotation from mega cap growth stocks to more cyclical stocks. Do We Need to Fear Stagflation? Most of the concerns that gripped the market in September disappeared again in October as several of the risks turned into positive surprises Higher Volatility But No Change in Outlook The S&P 500 has more than doubled in 18 months without any significant corrections until September, when market sentiment turned negative. The Stock Market and the Business Cycle A “golden rule” for asset allocation is to remain bullish on equities unless there is a good reason to think that a recession is around the corner. A Hidden Equity Market Correction The unprecedented nature of the …