Multi-sector asset allocation outlook: Q1 2019

This new quarterly report highlights Invesco Fixed Income’s asset allocation decisions for rates, currencies and credit, its overall risk position, and the investment implications of the team’s macro factor framework.

Feb 26, 2019 | Invesco Fixed Income

This new quarterly report highlights Invesco Fixed Income’s asset allocation decisions for rates, currencies and credit, its overall risk position, and the investment implications of the team’s macro factor framework.
 

For macro factors, the team believes the peak in global growth is behind themselves but the risk of a near-term recession is low. Inflation is ticking up globally but remains benign. The US Federal Reserve (Fed) is seeking to normalize policy but has adopted a more flexible approach and other major central banks remain accommodative. The Fed pause and a softer US dollar have eased global financial conditions.

In terms of asset allocation, the team’s global macro factor outlook points to slowing global growth, stable global inflation and slightly looser financial conditions over their three-month investment horizon. The team favors long positions in global duration and credit and are neutral the US dollar.

The team’s risk stance is slightly positive. The team believes the current hiatus in Fed interest rate hikes, signs of continued global growth and low inflation are likely to be positive for risk assets over a 3-month investment horizon.


Click on “Download PDF” to read more.
 

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