In this video, Bill Dinning, Chief Investment Officer, discusses the resilience of global equity markets, supported by robust corporate earnings in the US.
He explores the implications of record-high profits alongside the prospect of Federal Reserve rate cuts, even with inflation above target, as well as the potential economic risks coming from rising US tariffs and shifts in immigration policy.
Bill reflects on what these developments could mean for growth, inflation and market expectations, while noting recent policy moves from the Bank of England.
Key takeaways:
Robust double-digit US corporate earnings growth continues to support markets, with the Fed expected to start cutting rates this month and keep cutting through next year.
Tariff revenue has climbed sharply, and immigration policy is tightening the labour market in sectors like construction and agriculture, two forces the team flags as potential medium-term inflation risks.
The team hasn't changed its core asset allocation but has increased spending on hedging given the level of policy uncertainty.
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