June 21, 2023

Asset Allocation Insights - June 2023

Quarterly report

Disinflation, stable 7-10 year sovereign yields, stronger-than-expected economic growth and AI euphoria lead to risk-on rally, but downside risk remains

Key highlights:

  • Contradictions and a mixed picture
  • Stay short or long duration? Fixed income, particularly investment-grade credit gains appeal
  • Big changes in equity leadership
  • Infrastructure and commodities for diversification

Published quarterly, this report covers:

  • Key macroeconomic influences and their implications for financial markets
  • Core drivers across asset classes – and what they are indicating
  • Cross-asset analysis – expectations, risk premiums, return and risk, correlations and more
  • Implications for asset allocation and portfolio construction
  • Market analysis provided exclusively via our indices, and Refinitiv and Lipper flows data – enabling apples-to-apples comparisons across asset classes and global markets

Webinar - Changes, risks & opportunities in global markets: asset allocation implications

Indrani De, Head of Global Investment Research at FTSE Russell explores cross-asset investing in our new world of higher rates and lower growth, touching upon key themes such as:

  • Changes in the macro economic backdrop that will impact asset allocation
  • Increasing dispersion and de-synchronisation in the outlook across geographies
  • Current trends within equities including US vs ex-US, diversification benefits between Developed and Emerging countries and why Developed Europe and Japan are doing so well
  • Current trends within fixed income – across the credit spectrum and geographies
  • The current situation in absolute and relative terms for fixed income and equity

To support your investment decision-making, we produce specialist content that provides analysis and insights on a range of investment topics. Go to our Global Investment Research Hub for valuable Market Insights.

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