Ballot members had been cut up 50/50 on whether or not development or worth shares will outperform within the second half of 2023.

Bonds vs equities

Requested about their expectations for bonds:

• 47% assume US Treasury yields will are available in at 3.5%-4%
• 41% see charges receding, main 28% anticipating 10-year Treasuries to drop to the three%-3.5% vary
• 13% assume charges might transfer to between 2.5%-3%

For equities, the place the most recent tech rally has had vital weight, not one of the strategists assume tech’s beneficial properties will intensify, 31% count on it to “proceed steadily” and 6% of strategists assume the “bubble will burst.” Extra usually, half of respondents assume equities will cool off by way of this second half of the 12 months with costs dipping to mirror the basics.

“Huge tech helped equities come roaring again within the first half of the 12 months however, whereas few predict a serious downturn, most are involved about company earnings throughout H2 and count on the rally to fade away by the tip of the 12 months. Recession remains to be an actual risk, however most count on a softer touchdown. The successes of H1 might dissipate, however our strategists and economists nonetheless consider there are good alternatives when you look fastidiously,” concluded Chetouane.