US retail sales
US retail sales. Never bet against the American consumer. But here, it is the flush-with-cash-from-the-pandemic-savings-and-stimulus that provides the impetus, alongside the behavioural effect of expecting higher inflation on consuming today.
We are cautious on US housing, and expect that higher mortgage rates will “hardstop” the housing market, with those mortgage rates driven by the base rate effect of the Fed slamming on the breaks.
At the DAA level, we’ve increased our geographic diversification across international equities, and within equities, we remain overweight the stocks and sectors that benefit from higher interest rates.
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Please note that past performance is not a reliable indicator of future performance.
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