Global manufacturing is undergoing a slowdown that, for now, is not spilling over to the rest of the economy. But any escalation in trade tensions could edge the global economy closer to a tipping point. As things stand, we have yet to see any signs of a forthcoming recession.
Expectations for lower interest rates are very high and if global uncertainties recede then a return to more normal levels will weigh on bond yields. Equity markets currently offer record-high risk premia compared with other asset classes, more than compensating for the associated risk. The economic environment could turn out to be favourable for equities, but flexibility remains the key to dealing with uncertainty.
See also : World | Economic outlook S2 2019
This video is not pre-contractual or contractual in nature. It is provided for information purposes. The analyses and descriptions contained in this document shall not be interpreted as being advice or recommendations on the part of Lazard Frères Gestion SAS. This document does not constitute an offer or invitation to purchase or sell, nor an encouragement to invest. This document is the intellectual property of Lazard Frères Gestion SAS.
