Outlook
& news.

The equity markets have risen sharply overall since the start of the year, but this solidity is not what it seems when analysed, given that these surges are so focused on a few large caps in the US (and, to a lesser degree, in Europe).

In 1973, when Baron Edmond de Rothschild learned the Château Clarke was for sale, he began to dream. Yet the winery lay abandoned. At the same time, a few kilometres away, Château Margaux and its Premier Grand Cru Classé were also on the market.

While market participants brace themselves for a recession that is yet to unfold, few are preparing for a long protracted one or the eventuality of a mild, shallow recovery. Investors contemplating both: long recession and a shallow recovery are a rarity. Our conviction is that equity markets will need more patience to recover than most investors are willing to make room for.

In 2021 we learnt of the “Great Resignation” in the United States, a powerful trend that saw millions of workers choose not to return to work after the Covid lockdowns, a growing number of resignations and as a result, the first recruitment difficulties for companies.

The credit market currently offers interesting opportunities despite a volatile environment, and a target maturity fund seems to us to be a particularly suitable investment solution to benefit from them.

First Citizens Bank’s purchase of Silicon Valley Bank’s deposit and loan portfolios allayed the threat of a systemic bank crisis.

After the events of the past three weeks in the banking sector, there is nothing to confirm a contagion of the “banking crisis” in the United States, but rather relatively contained tensions for small banks for the time being.

Uncertainty dominated after regulators and central banks intervened over the weekend to stop the interbank market situation worsening.