As investors move their focus away from inflation and towards the real economy, asset classes that are sensitive to economic indicators – such as equities and high yield – will likely underperform investment-grade bonds.
“We expect valuations to reprice to reflect lower earnings in the first half of the year, but for any recession to be relatively short lived,” says Ben Pakenham, head of European high yield and global loans at Abrdn. “As such, we expect riskier assets to outperform in the second half of the year.”
We expect riskier assets to outperform in the second half of the year
Ben Pakenham, Abrdn
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