Quarterly Investment Update video: Steady on, with a weather eye on the horizon
Rathbones’ co-chief investment officer Edward Smith explains how we see reasons for optimism, but remain vigilant.
As we enter a new quarter, we still think a recession over the next 12 months is unlikely, but a clear catalyst for removing investors’ fears has yet to emerge. While we can’t shy away from the risks, as Ed explains in this 9 minute video there are reasons to be optimistic.
After a long run of upward revisions, the growing perception is that tougher front-loading of rate hikes by the US Federal Reserve (Fed) will be enough to cool inflation down. Scaled back rate expectations have in turn lifted the price of equities.
Risks remain, however, and the largest of these is another jump in energy prices that could stifle growth.
You can also read our full quarterly review and outlook here.