Most assets struggled this month amid concerns that resilient core inflation, particularly in the US, may delay central bank easing cycles. But we continue to think that central banks will cut interest rates by more than investors are discounting over the next year or so. That informs our view that most bonds have room to rally. And we expect equities to outperform most other assets as a bubble fuelled by AI-enthusiasm continues to inflate, supported by a backdrop of resilient economic growth and monetary easing cycles.
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