Market Compass April 2022
- The Russia-Ukraine war has exacerbated two of the key risks for 2022: much higher energy prices and tougher central banks.
- Central banks have been handed a “mission impossible”: bringing unacceptably high inflation rates down, without causing a hard landing.
- We expect central banks to slightly undershoot ambitious market pricing, given our below-consensus growth forecasts.
- We recommend reducing the cyclicality of portfolios and turn very selective in picking risk assets. We see little value in chasing the March equity market rebound at this level of valuation.