HSBC strategists predict supportive backdrop for risk assets By Investing.com

Investing.com – HSBC strategists led by Max Kettner have issued a positive outlook on risk assets for the coming months based on the latest consumer price (CPI) and producer price index (PPI) data.The team views these data as key factors that can create a favorable environment for risky assets.

Strategists expect only minor declines in the near term and suggest using any potential declines as an opportunity to increase exposure to riskier assets.They also note that current sentiment and positioning continue to indicate a buy signal.

The team also foresees potential downward pressure on core inflation, which they believe could be too supportive for both risk assets and sovereigns. that some bond proxies, such as homebuilders, have recently been oversold.

In addition to equities, strategists are also predicting a possible rebound in emerging market (EM) local debt.They continue to view gold as a key overweight, particularly from a hedging perspective, although they note that the recent rise in oil prices appears too large.

The HSBC team also anticipates potential slight negative surprises in US activity data and higher consensus expectations for growth in the first quarter due to residual seasonality.

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