The previous week was significant for the world markets. Central banks and governments have put even more effort into fighting inflation. As a result, asset prices around the world dropped sharply. Global investors are expecting more disruptions this week.
Mike Kelly, head of asset management at PineBridge Investments (USA) expressed doubts about the duration and nature of the recession, saying that preparations for the unexpected consequences of further actions that tighten monetary policy are now on his mind.
David Kotok, chairman and chief investment officer of Cumberland Advisors, stated the fact of the dramatic change in exchange rates. He explained the volatility in the currency markets as a result of interest rate setting by governments and central banks.
Global tightening of monetary policy increases the risk of recession worldwide. According to many, the situation will inevitably get worse. At the moment, even discount hunters aren't showing much interest in asset class sales.
The Global Distribution Fund for Blackrock is the largest asset manager in the world. His curator, Russ Koesterich, said the fund remains cautious including bonds. He noted that his expectations for the stock distribution are significantly lower than the benchmark.