After two years of positive performance across the board, with almost no asset class in negative territory, 2018 is marking a change of direction, with an unprecedented percentage of asset classes in red. This may cause a sense of uncertainty among investors facing uncharted waters ahead. The challenge has been even bigger for European investors still living in a zero-rate environment, facing the challenge of no returns on the bond side and losses across all risk assets, exacerbated by idyosincratic stories such as the Italian budget confrontation and by the still uncertain Brexit scenario.
Pascal BLANQUE, Vincent MORTIER
This section develops our central scenario and our main convictions. It highlights the main orientationsos our asset allocation and presents the strategies that characterize the structure of our portfolios: bond portfolios, equity portfolios and diversified portfolios.
Global Head of Research
Global economic conditions are benign thanks to a highly accommodative monetary and financial environment while trade multipliers magnified the re-synchronisation of the global cycle, the recovery in global investments and corporate profits (and specifically EPS momentum). The weak relationship between growth and inflation marks this cycle as unique.
Didier BOROWSKI, Philippe ITHURBIDE