SNAPSHOT2 min read

Our multi-asset investment views - June 2023

We upgrade our view on equities, as we push out our forecast for a global economic slowdown given resilient job markets and a strong service sector.



Multi-Asset Investments

🟢 Long / positive

🟡 Neutral

🔴 Short / negative

🔼 Up from last month

🔽 Down from last month

Main Asset Classes

🟡🔼 Equities

We have moved to neutral on equities as we push out our forecast on a global economic slowdown given resilient labour markets and the strong service sector.

🟡🔽 Government bonds

We have moved to neutral as the inversion of the yield curve (where long-term interest rates fall below short-term interest rates), means that bonds have a negative carry.

🟡 Commodities

We remain neutral as the goods sector remains weak, inventory levels remain stable, and China’s reopening has been underwhelming.

🟢 🔼Credit

We have upgraded credit as the removal of the debt ceiling has improved the outlook and allocating to credit gives us access to duration with a positive carry.


🟡🔼 US

A delay to any recession means earnings may rise in the short term. This - coupled with an already strong service sector - leads us to upgrade to neutral.

🔴 UK

Upwards revisions to payroll data show growth in employment, despite the very high level of inflation. The market is expecting several more rate hikes and the delayed effects, such as higher mortgages, are yet to be fully felt.

🔴 Europe

We remain negative as the eurozone plunges into recession, driven largely by a slowdown in Germany’s sizeable manufacturing sector.

🟡🔼 Japan

We have upgraded to neutral. Despite the recent rally, valuations still appear cheap. However, escaping deflation and corporate governance reforms could create potential tailwinds in the longer term.

🟡 Global Emerging Markets1

We remain neutral as although EM central banks are ahead in their hiking cycles, the US Federal Reserve (Fed) maintaining a hawkish tone (advocating higher interest rates) creates headwinds for the asset class.

🟡🔽 Asia ex-Japan, China

The rebound in the services sector has quickly lost momentum. We have downgraded to neutral and anticipate more impactful stimulus next month.

🔴 EM Asia ex China

We remain negative due to the weak global manufacturing cycle and heavy reliance on the technology sector in countries such as Taiwan and South Korea.

Government bonds

🟡🔽 US

We have downgraded to neutral. The inverted yield curve (where short-term debt instruments have higher yields than long-term instruments of the same credit risk profile) and negative carry (where money is borrowed in a high-interest currency and invested in a low-interest currency) mean that US government bonds are unattractive to hold.

🟡🔽 UK

We have downgraded to neutral as interest rates are expected to be significantly increased to combat the persistently high inflation rate.

🟡 Germany

We remain neutral for the moment, given our belief that the European Central Bank’s (ECB) pace of rate hikes has peaked, and inflation appears to have started trending down.

🟡 Japan

We stay neutral. While Japan is still battling high inflation, the Bank of Japan’s new governor has pledged to maintain a loose monetary policy.

🟡 US inflation linked bonds

We still prefer to take exposure through nominal bonds as we expect inflation to begin to moderate.

🟢 Emerging markets local currency bonds

We remain positive as EM central banks are ahead of developed markets in their hiking cycle to contain inflation. EM inflation is falling, and we expect more cuts to come.


Investment grade credit

🟡 US

We remain neutral as financial conditions are tightening faster in the US compared with Europe, and US spreads have unattractive valuations.

🟢🔼 Europe

We upgrade to positive. There is a demand for high quality credit, spreads are above the median and financial conditions are tightening more slowly in Europe compared with the US. The sector is attractive too as it allows access to duration with positive carry.

🟡 Emerging markets USD

A soft landing would favour EM debt, but until we have clearer signals, we prefer to stay on the side-lines.

High yield bonds (non-investment grade)

🟡 US

We remain neutral. Tighter financial conditions have led to an increase in US HY default rates. Additionally, recovery rates have been falling to historical lows.

🟡 Europe

We remain neutral. Valuations have marginally deteriorated and uncompelling spreads lead us to stay on the side-lines.



🟡 Energy

Despite production cuts from Saudi Arabia, the market appears adequately supplied. China’s reopening has played out, and we expect energy markets to remain balanced.

🟡🔽 Gold

We have downgraded to neutral as growth has remained resilient, the labour market has yet to crack and core inflation is still problematic, driving down gold prices.

🟡 Industrial metals

We remain neutral due to the weak global goods cycle, abated supply-side issues, and China's service-led recovery losing momentum.

🟡 Agriculture

Fertiliser prices continue to fall, and good growing conditions set the stage for sturdy harvests this season. We maintain our neutral view as robust demand is balanced with strong supply dynamics, presenting limited upside.


🟡🔼US $

We have upgraded the dollar to neutral as higher than expected US growth could lead to more rate rises than previously expected. However, we remain cautious given the potential for volatility.

🟡🔽UK £

We have downgraded sterling, as although we believe the pound should benefit from high interest rates, we prefer to stay on the side-lines given potential volatility.

🟡🔽 EU €

We have downgraded to neutral as we believe that the ECB’s rates trajectory will be steadier in the coming months and we have reached a peak.

🟡 CNH ¥

Our maintain our neutral stance due to trade cycle dynamics. Additionally, the level of carry on offer is still not deemed particularly attractive.

🟡 JPY ¥

We remain neutral. Given the shift from inflation to slowing growth, the yen could be viewed as a safe haven currency.

🟡 Swiss franc ₣

We remain neutral on the Swiss franc, similar to the yen this is considered a safe haven currency.


Global Emerging Markets includes Central and Eastern Europe, Latin America and Asia.

Source: Schroders, June 2023. The views for equities, government bonds and commodities are based on return relative to cash in local currency. The views for corporate bonds and high yield are based on credit spreads (i.e., duration-hedged). The views for currencies are relative to the US dollar, apart from the US dollar which is relative to a trade-weighted basket.

Important Information: This document is marketing material. This document is provided by the Investment Communications team and may not necessarily represent views expressed in other Schroders communications, strategies or funds. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide and should not be relied on for accounting, legal or tax advice, or investment recommendations. Reliance should not be placed on the views and information in this document when taking individual investment and/or strategic decisions. Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause the value of any overseas investments to rise or fall. The sectors, securities, regions and countries shown above are for illustrative purposes only and are not to be considered a recommendation to buy or sell. All investments involve risks including the risk of possible loss of principal. Information herein is believed to be reliable, but Schroders does not warrant its completeness or accuracy. Reliance should not be placed on the views and information in this document when taking individual investment and/or strategic decisions. Some information quoted was obtained from external sources we consider to be reliable.

No responsibility can be accepted for errors of fact obtained from third parties, and this data may change with market conditions. This does not exclude any duty or liability that Schroders has to its customers under any regulatory system. MSCI: Third party data is owned or licensed by the data provider and may not be reproduced or extracted and used for any other purposes without the data provider’s consent. Third party data is provided without any warranties of any kind. The data provider and issuer of the document shall have no liability in connection with the third-party data. The Prospectus and/or contains additional disclaimers which apply to third party data. FTSE: FTSE International Limited (“FTSE”) © FTSE 2019. “FTSE®” is a trademark of London Stock Exchange Plc and The Financial Times Limited and is used by FTSE International Limited under licence. All rights in the FTSE indices and or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent. Regions/sectors shown for illustrative purposes only and should not be viewed as a recommendation to buy/sell. This content is issued by Schroder Investment Management Limited, 1 London Wall Place, London, EC2Y 5AU. Registered No. 1893220 England. Authorised and regulated by the Financial Conduct Authority.

Please note any past performance mentioned is not a guide to future performance and may not be repeated. The sectors, securities, regions and countries shown are for illustrative purposes only and are not to be considered a recommendation to buy or sell.


Multi-Asset Investments


Market views
Asset Allocation
Multi-Asset Solutions
Follow us

Please consider a fund's investment objectives, risks, charges and expenses carefully before investing.

The website and the content included is intended for US-based financial intermediaries (and their non-US affiliates) on behalf of those of their clients who are both (a) not “US persons” as that term is defined in Rule 902 under the United States Securities Act of 1933, as amended (the “1933 Act”) and (b) “non-United States persons” as that terms is defined in Rule 4.7(a)(vi) under the Commodity Exchange Act of 1936, as amended. None of the funds described herein is registered as an “investment company” as that term is defined in the United States Investment Company Act of 1940, as amended, and shares of the funds described herein have not been and will not be registered under the 1933 Act or the securities laws of any of the states of the United States. The shares may not be offered, sold or delivered directly or indirectly in the United States or for the account or benefit of any “US person.”

The information contained in this website does not constitute an offer to purchase or sell, advertise, recommend, distribute or solicit a subscription for interests in investment products in any Latin American jurisdiction where such would be unauthorized. The information contained in this website is not intended for distribution to the public in general and must not be reproduced or distributed, entirely or partially to any individuals who are not allowed to receive it according to applicable legislation. The investment products and their distribution may not be registered in Latin America, and therefore may not meet certain requirements and procedures usually observed in public offerings of securities registered in the region, with which investors in the Latin America capital markets may be familiar. For this reason, the access of the investors to certain information regarding the investment products may be restricted. Financial intermediaries and Advisors must ensure the information provided in this website is appropriate and suitable to the receiver’s domicile and jurisdiction and according to the applicable legislation.

Issued by Schroder Investment Management (Europe) S.A., 5 (“SIM Europe”), rue Höhenhof, L-1736 Senningerberg, Luxembourg. Registered No. B 37.799

Schroder Investment Management North America Inc. (“SIMNA”) is an SEC registered investment adviser, CRD Number 105820, providing asset management products and services to clients in the US and registered as a Portfolio Manager with the securities regulatory authorities in Canada.  Schroder Fund Advisors LLC (“SFA”) is a wholly-owned subsidiary of SIMNA Inc. and is registered as a limited purpose broker-dealer with FINRA and as an Exempt Market Dealer with the securities regulatory authorities in Canada.  SFA markets certain investment vehicles for which other Schroders entities are investment advisers.

Schroders Capital is the private markets investment division of Schroders plc.  Schroders Capital Management (US) Inc. (“Schroders Capital US”) is registered as an investment adviser with the US Securities and Exchange Commission (SEC).  It provides asset management products and services to clients in the United States and Canada.  For more information, visit

SIM (Europe), SIMNA, SFA and Schroders Capital are wholly owned subsidiaries of Schroders plc.