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Investment Event

Markets more cautious
06 October 2023
    Download the full reportPDF, 1.25MB

    Key takeaways

    • Risk assets have come under pressure, with the S&P 500 declining over 7 per cent since its 2023 peak in late July
    • This has come amid higher bond yields and deteriorating economic conditions as the Fed signals a “higher-for-longer” interest rate regime
    • We think developed market equity and credit risk premiums are still not generous enough to compensate for multiple headwinds facing GDP and corporate earnings growth
    • We continue to advocate a cautious and defensive positioning in portfolios, and anticipate a pickup in market volatility as recession risks crystallise