Investment Outlook

It looks as if today’s situation, with double braking mechanisms in the form of a cyclical slowdown and a continued fight against inflation accompanied by tight monetary policies, may possibly ease. We are still in a late-cyclical phase, with a predicted soft landing ahead of us. In this phase, risk appetite usually diminishes since earnings are squeezed and the percentage of credit events increases, but the situation becomes more balanced once key rate cuts and growth recovery take shape. In this environment, we believe that risk exposure around a neutral position is appropriate.