Ross McKnight

We are inclined to believe that a correction may occur in the coming months as global equity market valuations are once again elevated and not pricing in several of the key risks that we see. These include escalating tensions in Iran, the end of the tariff pause, and the passing of the US budget bill. All could have negative implications for global growth, inflation and therefore result in earnings revisions.

We remain cautious and are underweight equities for the time being. However, we are still broadly optimistic that good risk adjusted returns can be made in multi asset portfolios before year end. We will use any weakness in markets to top up our European equity allocation.

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