Financial markets continued their upward trajectory over March, ending a strong 1Q24, continuing to be buoyed by the relative strength of the US economy
Financial markets continued their upward trajectory over March, ending a strong 1q24. Markets continue to be buoyed by the relative strength of the US economy despite the fact that the potential for rate cuts (including the number of cuts) is being pushed further into the back end of 2024. While we now believe we are past the top of the global rate tightening cycle, the potential for inflation and (by consequence) cash rates to be higher for longer remains.
While this likely to see ongoing gyrations across financial markets, we continue to see opportunities across both ‘growth’ and ‘defensive’ asset classes. However, given the current macro and market backdrop, our focus remains on mitigating exposures where we feel that risk/reward outcome is not justified, both in the short and medium term. Overall, we continue to maintain a broad-based investment strategy across the entirety of our portfolios, but with a view to modifying individual portfolio risk exposures as market dynamics evolve.