Exploring global economic divergence, investment yields and quarter three asset allocation

For professional investors only.

In this week's newsletter, Kristina Hooper , Chief Global Market Strategist, and Arnab Das , Global Market Strategist, explore the impact of global economic divergence on investment opportunities. Key insights include differing interest rate policies, contrasts in political stability between the UK and EU, and recent election surprises in emerging markets.

Are yields maintaining record highs and offering positive relative value? Kevin Egan , Ron Kantowitz, and Paul Triggiani discuss how bank loans, with yields at record highs, surpassed high yield bonds. Direct lending remains attractive due to a slower US Federal Reserve (Fed) rate-cutting cycle, and higher rates are creating investment opportunities in distressed credit, especially among small companies.

Paul Jackson and András Vig discuss our Q3 2024 portfolio outlook, highlighting geopolitical volatility and predicting significant central bank rate cuts by mid-2025.

More articles:

· What does France’s election mean for markets?

· Monthly commodities update

· Capital market assumptions | Q2 update

· Tactical asset allocation: Invesco Solutions

· Invesco Private Credit’s bank loans investing platform

· First Round French Parliamentary Elections: First take on results and investment implications

· Uncommon Truths | French elections and Eurozone equities