While we do not anticipate a recession over the next 12 months, the prospect of slowing growth and stubborn inflation has led us to downgrade our view on equities, and prepare for a new regime in which real assets could generally perform better than financial assets such as stocks and bonds.
“Our latest views represent a profound reassessment compared with the past two or three decades: over the coming cycle, we think real assets could generally perform better than financial assets such as stocks and bonds, but also provide more diversification opportunity as stocks and bonds become more correlated.”
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