Asset Allocation Outlook
Sentiment improved on the equity markets in May. The trade war died down somewhat, although there were still occasional skirmishes. Yet markets are less and less inclined to believe that the threats from the US will be carried out. Economic indicators were mixed, confirming that growth will be moderate. The risk of a recession has diminished though. US companies reported sound results. There continue to be concerns about the US budget deficit, pushing 20-year and 30-year bond yields up even higher. In the Eurozone, economic indicators are generally weak, and corporate earnings were down in the first quarter.
Please see Van Lanschot Kempen’s Asset Allocation Outlook for June. The highlights this month are:
- U-turn dents Trump’s credibility
- US dollar under pressure
- Equities rally, but earnings expectations are down
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