Most assets notched up gains this month, with “risky” ones generally outperforming “safe” ones. Government bond yields generally edged down in May and we expect that to continue, given our view that investors are still underestimating how far many central banks will cut interest rates. 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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