Manuela D’Onofrio

In the coming weeks it will be important to navigate uncertainty tied to the return of Donald Trump, but our experience tells us that in the long term corporate earnings remain by far the most significant factor for market performance. 

The focus should be on assessing how the current economic slowdown might impact US earnings growth, the depth of challenges facing certain sectors in Europe, and the ability of the Chinese economy to reverse its course. Concerns of higher inflation in the US may return so investors will have to balance risk and return amid an evolving interest rate landscape. As central banks navigate the transition from an environment characterised by high inflation and an exceptionally resilient economy to one featuring more fragile growth and labour markets, investors will need to make key decisions regarding their asset allocation.