Publications

2022 will be remembered as the year where no asset class was spared. The correlation between fixed income and equities was at its highest as the S&P 500 dropped 19.44% and the global aggregate credit index lost almost 16.96%. This positive relationship was unusual, as it defied economic textbooks and portfolio theory.

The reason for this market behaviour was of course the fast-paced hiking cycle to rein in inflation which triggered the market collapse even though the economy was growing. As we enter the rate cutting cycle in both Europe and the US, can central banks reverse engineer this process? What can we expect from the markets in the near future?