Liontrust Views Winter 2023 - Flipbook - Page 8
MARKET
OUTLOOK
Many of the risks that beset markets in 2022
have now been factored into asset prices
and we see a more positive tone coming
into markets.
Whereas the main worry for investors in
2022 was how far central banks would
hike interest rates to tackle inflation, their
focus is likely to switch now to the earnings
and financial strengths of companies. We
believe that financial markets still face
uncertainties, and this could cause more
volatility in the short-term.
We remain cautious about markets but
investors should bear in mind that while there
8
LIONTRUST VIEWS – WINTER
may be further downside in markets, staying
too long out of them risks missing out on a
sustained rally when one appears.
Asset class outlook
When we are positive about an asset class
we categorise them as ‘overweight’ and may
look to increase our allocation to this asset
class in our portfolios.
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
Underweight
Neutral