Global House View Second Quarter 2022

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Cross asset allocation: Our neutral score across all main asset classes represents a more cautious tone in markets that we see carrying on through the second quarter of 2022. Increased hawkishness by major central banks despite the ongoing Russia-Ukraine war shows a clear shift in policy to combat inflation. Yields across fixed income have pushed higher as a result. Although we see equity markets now at more attractive valuations, we anticipate further volatility as corporate earnings face greater headwinds and global growth is forecasted to slow. We prefer to be selective with risk within each individual asset class, for instance, within credit markets where we see pockets of opportunity after a re-widening of spreads.