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By Michaël LOK, Group CIO, Union Bancaire Privée (UBP)
April saw further active conflict in the Middle East, raising inflationary concerns, weak US Treasury auctions, and a nearly USD 500 billion liquidity drain, leading to a surge in US Treasury yields and a nearly 5% sell-off in US and global equities, a near repeat of the backdrop that challenged investors in October 2023. Fortunately for investors, as in October 2023, a series of catalysts are set to emerge going into the summer that should reverse these headwinds.
Starting on 1 May 2024, investors can look forward to the Federal Reserve announcing a “tapering” of the pace of its balance sheet reduction begun in 2022. As outlined in the March 2024 Fed minutes, the US central bank should...
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