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Podcast: All into Account
Episode: Equity Strategy: May Chartbook - Entering seasonally tricky time of the year, on top of a challenging combination of inflation at risk of staying too high and profit margin pressures
Description: Speaker: Mislav Matejka, CFA, Head of Global Equity Strategy
We are concerned about inflation staying too high if there is no slack created in the economy, adverse bonds demand-supply with negative term premia, consensus expectation of profit acceleration of almost 20% between Q1 and Q4 of this year, which doesn’t typically happen, especially if the economy softens in 2H, consumer tailwinds potentially turning, as well as concentration and leadership reversal hurting the market. At the core, the Goldilocks view that market embraced in Q1 of inflation/rates moving lower but at the same time of earnings acceleration an...