Liontrust Multi-Asset Quarter in Review - Flipbook - Page 6
Current positioning
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While our overall TAA score has fallen to
three, equities remain a four and we see most
markets as attractively priced, particularly after
indiscriminate selling over recent months.
The obvious risks lie in tightening monetary policy
and slowing growth but there is a sense share
prices, via corrections, have already factored in
worsening prospects for 2022.
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That said, we expect returns to be lower than
seen in the recovery since the sharp Covid shock
back in March/April 2020.
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Amid an ongoing value rotation, growth stocks,
particularly in the US, have fallen into a bear
market, which offers the opportunity to top up
growth and quality holdings.
6 - Liontrust Multi-Asset Funds and Portfolios Quarterly Report: Q2 2022
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We have seen the US as prohibitively expensive
for much of the last decade and while still not
attractive, it is less unattractive after corrections.
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Elsewhere, we continue to favour markets such
as the UK, which is still cheap despite a strong
run this year.
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For now, we retain a lower duration position
in our fixed income allocation as central banks
prevaricate over the timing and extent of rate
rises and tapering.