Video Script
We believe that the economic momentum is moving from recovery to expansion. This should lead to a broadening of the market leadership with a focus on earnings, momentum, and consistent growth profiles in our view.
As we move into the next phase in the economic cycle, monetary policies shift away from an accommodative mode towards more tightening, which should be expected over the next 24 months.
The market is likely to remain unnerved by the expectations of interest rates rising sooner than previously expected, in our view. This should bring a period of higher market volatility.
Inflation is still a talking point, although we don't expect a clear realisation on whether inflation is transitory or more persistent, until the middle of next year. So the debate on inflation is likely to continue for some time.
For us, it is too soon to draw conclusions, given the frictional inflation that economies are facing at the moment. We continue to keep an eye on wage inflation, which is the biggest contributor to persistent inflationary pressures - value growth bull bear debate should remain only present as a result of this backdrop in the meantime.
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