It’s been about two years since global central banks embarked on one of the swiftest monetary tightening cycles in modern history, aiming to tame inflation by holding back economic growth.
This month, we look at where we stand in the economic cycle through the lens our macro clock, which maps interactions between economic growth and inflation, and highlights the role of monetary policy.
Highlights:
- The rate hikes from central banks have probably had enough economic impact to keep inflationary pressures under control.
- The macro investment clock suggests that we’re about to slip into the most favourable environment for risk assets, although the continued absence of a recession might mean that history might not be a useful guide in 2024.
- Given the recent market moves to start the year, we move to an overweight on the loonie and on long-duration sovereign bonds.
Your Monthly Macro & Strategy is also on the iA Global Asset Management website.
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Your experts
Sébastien Mc Mahon, MA, PRM, CFA
Adil Mahroug, M.Sc.
Tuyen Tran, M.Sc., CFA |
"iAGAM" is a tradename under which iA Global Asset Management Inc. and Industrial Alliance Investment Management Inc. operate.
