- Central banks’ uphill battle against inflation overshoots is getting even harder.
- February has poured cold water on hopes that policy makers may quickly tame inflation towards target. We now have even higher peak rates in our books.
- The recent rebound in long-term real rates makes Equity valuations look even more stretched. Bottoming growth in European and China’s reopening bounce are only a partial relief.
- We continue to favour a (trimmed) underweight in Equities and HY, while seeing value (mostly in the carry) in IG Credit.
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