November 2023 | Economic deceleration and ambiguity over monetary policy are collectively increasing complexity across markets. This is not a time to take bold risks; instead, we believe investors should stick to their long-term convictions around duration in the US and Europe. In addition, current uncertainty on US inflation strengthens the case for enhancing safeguards. We believe oil offers additional protection and diversification from the recent increase in geopolitical risks.
01 | We continue to expect a mild US recession in H1. Higher-for-longer rates and tight financial conditions keep us concerned about the global economic outlook.
02 | In this environment, we believe avoiding losers is as important as picking winners; even good businesses trading at expensive valuations offer little protection in times of economic downturn.
03 | We are cautious on the cyclical parts of industrials, but are leaning toward businesses linked with long-term secular trends such as electrification, near-shoring/re-shoring and automation.
Unless otherwise stated, all information contained in this document is from Amundi Asset Management as of October 25, 2023. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the [author] and not necessarily Amundi Asset Management and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product or service. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not indicative of future results. Amundi US is the US business of Amundi Asset Management.
