• A New Round Of Monetary And Fiscal Policy

      The aftermath of the UK referendum has proved to be less painful than we initially thought. However, given the present political uncertainty worldwide, we remain cautious on the global economic outlook, sticking to the idea of low growth, low rates and low inflation for longer.
    • US Economic Outlook Improving

      Our economic outlook is based on a return to growth potential of the global economy, with converging growth rates between developed and emerging countries. Monetary policy is expected to be accommodative, although central banks’ actions will likely not be synchronized. Inflation should also remain contained, with deflation seen as a tail risk event. The current economic environment of low growth, low inflation and loose monetary policies advocates for low volatility and low bond yields. This scenario, coupled with positive expected earnings growth, should be supportive for risky assets.
    • Walking on a Tightrope post Brexit

      We believe that as the Brexit process begins to unfold in an already weak economic environment it may have an impact on the global economy through confidence, world trade, inflation expectation and currency dynamics. From a regional perspective, the Eurozone is expected to be hit hard and, consequently, the political response will be crucial to avoid further threats to the European project. US economy continues to perform reasonably well, as domestic conditions remain strong. Emerging Markets should be resilient and relatively less exposed to the economic slowdown after Brexit.