Market & Investment Risk Insights webinar (MAC)

Market Outlook and Portfolio Risk Insights: Navigating Economic Uncertainty

In this insightful webinar, Christoph Schon, head of investment decision research in Europe, explores the current market landscape characterized by cooling inflation, recession concerns, and geopolitical tensions. Using Axioma investment risk solutions, the presentation offers a detailed analysis of how these factors are impacting multi-asset portfolios, with particular attention to changing correlations between stocks, bonds, and currencies.

Christoph demonstrates how market sentiment has shifted from inflation concerns to recession fears, altering traditional asset correlations and creating new portfolio diversification dynamics. The webinar concludes with stress test scenarios examining potential impacts of trade wars and Fed policy decisions, providing investors with practical insights for navigating today's uncertain environment.

Key findings:

• Recent inflation data shows deceleration, but prices remain elevated in housing, transportation, and medical costs
• Market expectations have shifted to more rate cuts as focus moves from inflation to economic growth concerns
• The stock-bond correlation has turned positive again, with treasury bonds benefiting from flight-to-safety flows
• The dollar has weakened significantly while traditional safe havens like the Japanese Yen are strengthening
• Trade war scenarios reveal consistent patterns with cyclical sectors (technology, consumer discretionary) facing the greatest impact
• Stress tests examine two Fed policy scenarios: maintaining higher rates due to inflation versus accelerating rate cuts amid recession fears
• Portfolio risk management strategies now benefit from diversification effects not seen in several years

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Speaker(s)

Christoph Schon, Head of Investment Decision Research, EMEA, SimCorp

The webinar will be recorded so if you can’t make the event, sign up anyway and we’ll send it to you to watch in your own time.