NN IP: Robustness Revealed

Economic Outlook

US outlook continues to argue for Fed caution

The Fed has reason enough to remain determined to hike rates further but at the same time it can afford to be very patient. Caution will remain the Fed’s buzzword. Our base case is a next rate hike in July but there is a clear risk of this being pushed out to September. Read more

Asset Allocation

How to create investment strategy robustness

Shock absorbers in an investment portfolio need to be combined with the willingness to also exploit the opportunities that risk and uncertainty create. This is why next to the robustness of a portfolio, adaptation is a crucial characteristic of successful investing. Read more

Fixed Income

A gradual Fed tightening path should not derail the search for yield

Following the sharp recovery in Spread products seen since February, investors are questioning whether the recovery still has legs and are in a wait-and-see mode currently. Despite some expected profit-taking, the search for yield theme may still have some legs favouring Spread products. Read more

Equity Strategy

Fed minutes led to a rapid repricing of rate expectations

The minutes of the April Fed meeting were more hawkish than the market had expected. While the immediate reaction was predictable -- the USD appreciated and long-term bond yields rose -- it is far from sure that these trends will persist. If anything, it confirms the view that the hiking path will be very gradual.  Read more

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