Volatility returns to markets amid geopolitical uncertainty.
- After a broadly positive start to the year across asset classes, March brought a sharp change in tone driven by escalating conflict in the Middle East.
- Both equity and bond markets were unsettled, ending the quarter in negative territory as investors feared a stagflationary environment.
- Whilst geopolitical risks are clearly elevated, the underlying economic picture has not deteriorated materially. We continue to believe the foundations for a constructive outlook remain in place.
