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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Any reference to individual companies is purely for the purpose of illustration and should not be construed as a recommendation to buy or sell or advice in relation to investment, legal or tax matters.