As I look at the macro environment in the third quarter, I see a coasting global recovery of solid stable growth. Subdued inflationary pressures mean that monetary policy will be tightened only gradually, and this will support risk taking. In the current environment, I prefer equities over fixed income, credit over government bonds and, by region, European equities over US equities, but US credit over European credit. To hear more about key themes I see playing out, listen to this quarter’s strategic relative value audiocast, which you can look for every quarter.
For a deeper look into my thoughts on where strategic relative value can be found within equities, fixed income, and real estate, read the full report here.
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