As we enter the second half of the year, despite the worsening global economic outlook in the first half, the share rally led by technology companies pushes investors to be cautious.
According to some fund managers, trying to participate in the rally from this point may be a risky move after the MSCI World index rose by about 13 percent this year.
Andrew McCaffery, global CIO of Fidelity International, said: “Existing resilience sows the seeds of future vulnerability. We will experience a recession when we start to see the delayed effect of policies.”
According to HSBC Asset Management Global Chief Strategist Joseph Little, a nasty surprise awaits the stock markets in the second half of the year.
Little argues that weak economic fundamentals could lead to a nasty surprise, despite market participants’ expectations for a soft landing.
Janus Henderson Investors Fund Manager Luke Newman points out that the last good quarter may have been experienced in many sectors.
According to Newman, companies will be able to pass cost increases to consumers at a more limited level compared to last year.