Markets are in no-man's land - do not get wounded

Four tactics to cope

After a tumultuous H1, marked by market volatility across the board, we are witnessing a shift in sentiment.

Longer-dated US government bond yields - a strong indication of how investors view the direction of longer-term economic growth - have receded from 3.5% in mid-June to 3% today. This suggests bond markets have shifted from the first half focus of keeping pace with interest rates. Now, it is more concerned with pricing in the impact of slower economic growth, resultant from tighter monetary policy in developed economies, slower growth in China, and war in Ukraine - as well as the possibility of a global recession. And while investors are hoping for a turning point on inflation, there is l...