Relative Value & Tactical Asset Allocation Q3 2023

Jun Jiang
JUN 29, 2023

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Key Takeaways

  • Global economies are anticipating more economic headwinds in 2H23 with a higher risk of recession. 
  • Global monetary policy has diverged. 
  • Corporate credit fundamentals have softened, and the credit cycle is expected to turn.
  • We are seeing resilient housing fundamentals, healthy consumer balance sheets, and strong farm incomes. 
  • Most commercial property types are well positioned, but office is the sector with the most concerns. 
  • Corporate equity may lose steam, while cash seems attractive.