Was August just August? It seems not entirely. A jerky market correction in the middle of the US holiday season has been followed by another in the altogether more serious territory of September. There are reasons.
Whatever brand of landing you have your money on, the economy is returning to earth after five years in which abundant government support kept the global wheels turning. At the moment, we believe recent weaker data points are more likely to indicate a soft patch rather than a serious downturn, but investors are reacting. We are watching growth and labour market indicators closely for signs of further deterioration.
The overall picture is far from bleak. Markets and the global economy have proved consistently resistant since the pandemic and consumers all over the world are still spending. We believe the global economy is not headed for an imminent recession and see signs that we have a market rotation - rather than a sell-off - on our hands.
Our Investment Outlook highlights three key themes that we expect to dominate this quarter. Click on the link below to discover more as Global Head of Solutions & Multi Asset Henk-Jan Rikkerink discusses the potential economic and investment implications.
A dip in US growth will have an impact on Asia's own rates of expansion, but macro shifts will also provide room for the region’s policymakers to cut interest rates. With economic and geopolitical risks compounding outside of the region, a tactical and defensive posture could help investors make the most of these circumstances - and prepare for better days ahead.
Our Q4 Investment Outlook deck explains our scenarios in more detail, plus their investment implications.
