Attached is a copy of our Select Wealth Management Monthly View. Key points:
- The ongoing resilience of the US economy is supportive of US corporate earnings, and global economic activity is stabilising. This is supportive of a broader range of stocks outside the narrow range of AI/tech stocks known as the Magnificent Seven.
- Risks remain around the possibility of US recession, particularly if the Federal Reserve has to do more to declare victory over inflation, and ongoing geo-political risks.
- Fixed income (government and corporate bonds) offers an attractive yield with the potential for capital gains from declines in interest rates.