Global Markets Overview: July 2023

Macro volatility remains an important theme for 2023/24, supporting portfolio diversification:

• An equity-bond portfolio performed poorly in 2022 because inflation and real interest rates were higher than expected; we believe this remains a material risk in 2023/24, despite the year-to-date rise in equity prices.
• Many investors could still benefit from diversifying equity risk. Simple ways of doing so can include investing in hedge funds, alternative credit, and real assets.