Key Takeaways
Global economic fundamentals have generally deteriorated in the past three months, but much of that may already be priced into markets.
Our base case is for a meaningful economic slowdown from tighter financial conditions, which could see higher interest rates and more turbulence for markets. The path of inflation remains the leading indicator for what will come next.
While there are attractive opportunities in some areas of the market, our advice to clients remains to focus on their long-term allocations and diversifying across asset classes, geographies, and sectors to allow portfolios to perform regardless of economic and geopolitical events.
