Macro-economic update for July 2022

Several central banks have aggressively hiked interest rates. This policy tightening is likely to continue over the coming months—until the guardians of the currencies see that prices are stabilizing once again. But there are also more hopeful signs: Inflation may peak soon. In addition, the Chinese economy is gradually opening up.

Even so, it’s not enough—more will be needed before the situation returns to normal. However, we are cautiously optimistic. We are not expecting a broad-based, global recession in the next 12 months and are adjusting our portfolio slightly.