Equities have enjoyed a strong start to the year, as optimism continues to grow across investment markets. There was much talk in the last quarter of 2022 about the impending recession in the developed world, as Europe would be hit hard in 2023. We ourselves have written that it would be ‘the most forecast recession of all time’. But consensus views can be fickle. Interestingly, the idea of a recession being avoided entirely is gathering pace. A mild winter, stronger euro currency, and better than expected economic activity indicators, are all contributing to the brighter mood amongst investors.
However, things are often not as bad nor as good as they seem, and at Zurich we will continue to take a considered approach through the lens of our top-down investment process. Just as we did not believe that a recession would necessarily be bad for equities, nor is avoiding one necessarily good. However, the strong start to the year is undoubtedly positive and opportunities are now bound for good investment managers. In conjunction with the positive product developments in recent months, the time to act for those looking for long term exposure to investment markets is now .
As always, if you wish to discuss anything in further detail, please do get in touch.