The Big Picture: Looking beyond the fog of war 2026 Q2
Investment themes and asset class views
| Our themes | ||
|---|---|---|
| Improving global growth favours cyclical assets | Opportunities are greater outside the US | Favouring credit over government bonds |
The global economy is gaining momentum as financial conditions ease, economic signals improve, real wages rise, and policy remains supportive across major economies. This powints to a mid-cycle upswing rather than an approaching slowdown.
|
US assets, especially equities, look expensive relative to history, while many international markets offer more attractive valuations and greater sensitivity to improving global growth, in our view. Differences in policy paths also suggest a weaker US dollar over time.
|
Developed world government bonds offer limited upside as yields are likely to drift higher, in our opinion. We believe that improving growth supports selective credit exposure.
|
Asset class views
We evaluate a broad set of asset classes using a consistent framework built around multiple factors including the growth of the global economy, the direction of inflation and interest rates and the shape of the yield curve, market momentum, and valuations.
Note: There is no guarantee that these views will come to pass. *This is a theoretical portfolio and is for illustrative purposes only. It does not represent an actual portfolio and is not a recommendation of any investment or trading strategy. “CLOs” is AAA collateralised loan obligations. N/A indicates asset classes that are not included in the Model Asset Allocation structure. See appendices for definitions, methodology and disclaimers. Source: Invesco Strategy & Insights.
Investment risks
The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.
