KLDW News and Press, Knowledge Leaders Developed World From 05/17/22

Stock markets have seen immense volatility this year. The sharply rising inflation, Russia’s invasion of Ukraine and central banks raising interest rates are all weighing on equities. With volatility expected to remain high, reducing equity risk can be challenging but achie...

The rising rate, rising dollar environment continues with the dollar index hitting a 20-year high last week. That rising dollar is having an impact on the rest of the global economy but so far it has been manageable. There are a lot of companies out there that have come public over th...

We recently cut risk, but stick with stocks over bonds for now. Equity prices now reflect much of the worsening macro outlook and hawkish Fed, in our view. Markets came to grips last week with the trade-off central banks face: choke off growth or live with inflation. Yields fell and s...

Our macroeconomic forecasting team assesses how the war and latest survey data have altered the economic outlook, policymaking and recession risks. Global growth was dragged lower, principally by steep contractions in Russia and mainland China. Barring the initial COVID-19 outbreak, M...

Movements in global sector indices are consistent with investors reappraising portfolio allocations and shifting objectives towards capital preservation in real terms. The volatility in interest rate expectations has flowed into FX markets. We maintain a neutral outlook on global ...

We're seeing declining asset prices from bond to equities, and in some cases, real assets because of higher inflation. We are seeing early signs that inflation is starting to moderate. Equity market is currently pricing in the probability of a mild recession. For further det...

While growth outside of China has shown some encouraging resilience, losing only marginal momentum in April on average, this can be linked to resurgent spending on consumer services amid loosened COVID-19 restrictions. Worsening supply chain delays meanwhile contributed to renewed out...

Just when we thought the world economy was regaining its footing, a military conflict in Europe has led us to reconsider our outlook for growth and inflation. In light of Russia’s invasion, we developed a framework for thinking about the economic impact of the conflict on the e...

The pace of global economic growth slowed in April to the lowest since the downturn of the second quarter of 2020. While an easing of COVID-19 containment measures on average globally helped to sustain service sector growth in April, the rate of expansion in the service sector fell to...

The map of the Asset Allocation Committee’s market views is a buzz of activity this quarter. Coming into 2022, we anticipated slower growth compared with the steep recovery levels of 2021 and inflation that was declining but persistent—and problematic due to its origins ...