Investment Outlook: Falling inflation will provide support during slump
China’s economy is gearing up as the rest of the world slows down into a brief, shallow recession in which corporate earnings will hold up well. The investor community is restrained and cautiously positioned, while the corporate sector is thriving and in good shape. Our main economic scenario foresees a slowdown in 2023 and an acceleration during 2024. We support a neutral allocation at the asset class level, combined with good risk diversification, since volatility is likely to persist. “In this environment of positive and negative forces, since early autumn 2022 we have advocated a