Every quarter, BLI – Banque de Luxembourg Investment’s fund managers analyze trends in the global economy and financial markets.
Macroeconomic environment
A global recession is looking increasingly likely.
Persistent inflation in services is preventing a rapid easing of price increases.
The US and European monetary authorities are determined to continue monetary tightening despite the economic slowdown.
Financial markets
The decline in stock prices since the beginning of the year is not a buying opportunity.
Earnings expectations seem too high given the upcoming economic slowdown.
The risk of a further sharp rise in bond yields seems limited.