Every quarter, BLI – Banque de Luxembourg Investment’s fund managers analyze trends in the global economy and financial markets.
Macroeconomic environment
The global economy appears to be heading towards recession.
Inflationary pressures show little sign of easing.
The US Federal Reserve is tightening its monetary policy at a record pace.
Financial markets
After a first half of the year characterised by fears of inflation and rising interest rates, the possibility of a sharp economic slowdown could become the major theme of the second half of the year.
An environment characterised by an economic slowdown and a continuation of monetary tightening by central banks cannot be positive for the stock markets.
The outlook for Asian markets appears to be generally better than for Western markets.