Post by Lombard Odier Group

How might investors position for the post-Middle East conflict? Equity markets have remained resilient this year, supported by strong earnings momentum and sustained investment in technology and artificial intelligence. Our base case is that higher sovereign yields may create short term valuation pressure, but are unlikely to derail equities as central banks are better positioned than in 2022 when they were forced to rapidly hike policy rates. Earnings growth remains the key anchor, particularly in emerging markets where valuations are more compelling and revisions stronger. In portfolios, we keep a moderate pro risk stance, expressed through emerging market equities, emerging market hard currency bonds and gold as a diversifier against geopolitical and inflation risks. #rethinkinvestment #rethinkeverything