Key takeaways:
- Deglobalization’s secular inflationary forces could complicate matters for Central Banks, leaving them with no choice but to raise interest rates for longer than markets currently anticipate.
- Sectors & regions that have been starved for capital by the AI boom might again attract capital. Although reductions in the global liquidity could be a challenge for speculation, we believe those restrictive actions will lead to more rational allocation of capital.
- Global profits are strong and accelerating broadly, providing opportunity in a wide range of regions/sectors. 75% of super growth stocks (forecasts above a 25% growth rate) are now outside the US.
The Janus Henderson Multi-Asset Macro & Customized Investing Team applies a disciplined, top-down approach to investing, focusing on corporate profits, liquidity and investor sentiment/valuation.
This update provides an overview of the team’s views on market dynamics, what they’re buying, and the three key macro pillars that drive positioning across Janus Henderson’s range of multi-asset models and portfolios.
IMPORTANT INFORMATION
Hard vs. local currency emerging market debt: “Hard currency” emerging-market debt is issued by emerging-market borrowers in a major currency such as the US dollar; “local currency” debt is issued in the borrower’s own currency, exposing investors to movements in that currency.
High yield bond: Also known as a sub-investment grade bond, or ‘junk’ bond. These bonds usually carry a higher risk of the issuer defaulting on their payments, so they are typically issued with a higher interest rate (coupon) to compensate for the additional risk.
Inflation-linked bond: Also known as inflation-protected securities, a bond whose principal and/or interest payments are adjusted in line with inflation, designed to protect investors from a loss of purchasing power.
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These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. References made to individual securities do not constitute a recommendation to buy, sell or hold any security, investment strategy or market sector, and should not be assumed to be profitable. Janus Henderson Investors, its affiliated advisor, or its employees, may have a position in the securities mentioned.
Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.
The information in this article does not qualify as an investment recommendation.
There is no guarantee that past trends will continue, or forecasts will be realised.
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