JPMAM's Hugh Gimber: Seizing opportunities amid 'higher for longer' rates

Growth's geographical composition is changing

At the start of this year, market pricing suggested that investors were anticipating a combination of robust global growth, declining inflation, and rapid rate cuts.

While resilient growth has supported risk assets, stubborn inflation has pushed bond yields higher as government bond investors have had to scale back their expectations for lower rates.  Looking ahead, the growth outlook remains strong, but its geographical composition is changing. In the US, momentum is slowing, with consumers coming off last year's sugar high as pandemic savings dwindle. Federal Reserve holds interest rate steady amid cooling inflation In Europe though, consumer confidence is rebounding, the cost-of-living shock is fading, and pandemic-era savings are still y...