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11 APRIL 2022

Asset Allocation Outlook April

The war in Ukraine continues to rage but investors are looking to the future. The US S&P500 equity index is now higher than in the run-up to Russia’s invasion. Although the European STOXX index has not yet returned to its former level, it has rallied sharply. Equities from industrialised nations earned a plus of 2.5% in March. In local currency, US equities climbed by 3.6%, while Europe was still slightly negative at -0.4%. Yet this was still better than emerging markets, which lost 2.5%. This was primarily due to a downturn in the Chinese MSCI index of 6.1%, but a drop of 3.7% in Taiwan also stood out. Higher bond yields caused government bonds to note extremely negative returns: -2.8% in the US and -3.9% in the Eurozone.

Please see Kempen’s Asset Allocation Outlook for April. The highlights this month are:

Inflation rises even higher and has a negative impact on economic growth
Negative slope in US yield curve not yet negative for equities
Less positive corporate earnings growth
Investment policy unchanged, neutral position in equities

Asset Allocation Outlook

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