“Overall, we carry a spirit of cautious optimism into 2018, albeit that caution may start to overwhelm optimism as the year wears on. It is certainly an approach we are adopting in our multi-asset portfolios, which go into 2018 with a pro-cyclical tilt in favour of equities, but with a readiness to ratchet down risk should circumstances demand it,” says Peter Harrison, Group Chief Executive at Schroders.
“The main risk we see lies in reflation, as governments turn to lower taxes and higher infrastructure spending to stimulate economies, which could lead to overheating and unexpected rises in inflation and interest rates.”
From across their organisation, Schroders has gathered a round-up of outlooks. Cautious optimism prevails.