13 June 2024
Asset Allocation Outlook
Equities and bond yields moving in opposite directions is an increasingly common sight on the financial markets. May was no exception, in the US at least. Two-year and 10-year bond yields fell in response to inflation data that for once didn’t disappoint and signs of a slowing economy, while equities noted gains. Equity prices climbed by slightly less in Europe but yields rose by a small amount there too. Spreads widened marginally on US high yield credits but tightened on US and European investment grade credits and European high yield credits. The fact that spreads that are already tight in historical terms contracted further is an indication of the optimism on the financial markets. A downward oil price, even after the OPEC countries announced an extension to production cuts, boosted the positive sentiment.
Please see Van Lanschot Kempen’s Asset Allocation Outlook for June. The highlights this month are:
Please see Van Lanschot Kempen’s Asset Allocation Outlook for June. The highlights this month are:
- Divergence between US and Eurozone
- High service sector inflation doesn’t stop ECB cutting interest rates
- Overweight in equities, larger underweight in US investment grade credits
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The information in this publication is of a general nature. This publication may at no time be viewed as an offer and you cannot derive any rights from this publication. The external sources used to produce this publication were selected with the great care. We cannot guarantee that the information and data from these sources is up-to-date, correct and exhaustive. We accept no liability for printing and typing errors. We are not obliged to update or amend the contents in this publication. All rights related to the content of this publication are reserved, including the right to amend.
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