Liontrust Views Spring 2023 - Flipbook - Page 8
MARKET
OUTLOOK
After a difficult 2022, there is some light at
the end of the tunnel with the end of March
marking the second quarter of recovery for
markets. Global equities and bonds were
overall moderately positive in March.
But the month had its drama, with the
unexpected implosion of US technology
bank, Silicon Valley Bank (SVB), the largest
bank failure since the Global Financial
Crisis, and the failure of two smaller US
banks – Silvergate Bank and Signature
Bank. This was followed by the takeover of
Credit Suisse, Switzerland’s second largest
bank, by UBS. State support, however,
quickly prevented any run on the banks.
8
LIONTRUST VIEWS – SPRING
Despite the ongoing risks of recession and
persistent inflation, there is a more positive
underlying tone to markets now. However,
we are cautious and expect further volatility
(by which we mean upward and downward
movement in share prices), and while this
might present even better opportunities, we
believe in time in the markets rather than
trying to time our entry.
Conversely, when we are negative about an
asset class, we classify it as ‘underweight’
and may reduce the allocation.
Finally, ‘neutral’ means that we are not
positive or negative.
KEY
Overweight
Asset class outlook
When we are positive about an asset class,
we categorise it as ‘overweight’ and may
look to increase our allocation to it in our
portfolios.
Underweight
Neutral
