Volatile swings in sentiment about the outcome of the conflict in Ukraine continue to sway markets. Inflation is still surprising to the upside, and as a result, expectations for the level of policy rates both in the US and the eurozone are ratcheting higher.
Watch our asset allocation video with Maya Bhandari, Head of Multi-asset, and Daniel Morris, Chief Market Strategist, as they discuss the portfolio adjustments as well as the outlook for rates and risk positioning.
Please note that articles may contain technical language. For this reason, they may not be suitable for readers without professional investment experience.
Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients. This document does not constitute investment advice.
The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay. Past performance is no guarantee for future returns.
Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).
Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.