Relative Value & Tactical Asset Allocation Q4 2023

Jun Jiang
OCT 02, 2023

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Key Takeaways

  • Divergence in global monetary policy has become more obvious, with emerging economies cutting interest rates.
  • Global economic growth is expected to slow further, putting downward pressure on global government bond yields.
  • Valuation risks across credit markets remain high, with credit fundamentals mostly weakening.
  • While home prices have held up, changing bank capital regulations and student loan payments may impact the current market dynamics.
  • Agriculture fundamentals remain healthy, while office continues to be the most concerning sector.
  • We believe that current equity valuations are too high, while cash investments remain attractive.