Investment Outlook: Inflation downturn will ease risk picture
A brighter international outlook is emerging, due in particular to an improved inflation outlook. Yet we still expect a mild recession during 2023, with a recovery starting in the second half of the year. We believe that this outlook is discounted in financial markets, with bond yields at more normal levels and equity valuations in line with historical averages. Despite prospects of a brighter outlook, we are maintaining a neutral allocation between asset classes in our portfolios because of the impending slowdown in growth and earnings. “In a slightly longer perspective, market