Natixis Investment Managers (Natixis) has released a rather gloomy survey which suggests market s will ‘grapple with a number of downside scenarios and little in the way of upside surprises’.
Weighing on this negative sentiment is clearly Brexit although accommodative central bank policies may provide some upside benefits to equities.
The Natixis report explores the findings from 17 CEOs, market strategists and economists from across Natixis Investment Managers and its affiliated managers about what investors might expect in the 2nd half of the year. The survey marks the first time this group has been polled together.
Downside risks
Esty Dwek, Head of Global Market Strategy, Dynamic Solutions, Natixis Investment Managers said: ““The survey results clearly show that, in aggregate, our respondents don’t see a lot of positive market catalysts on the horizon – nor do they see a recessionary worst-case scenario as very likely in the near term. It’s a kind of a ‘muddle through’ outlook.”
Not all doom and gloom, upside potential
As the market is pricing in further Fed rate cuts, Natixis strategists are most bullish on US Sovereign bonds, followed by emerging market equities, global REITs and emerging market bonds of all types (hard currency, local currency, and corporate). The common thread running through these bullish forecasts is an accommodative central bank policy and resulting ample global liquidity
