This monthly commentary gives a roundup of global markets and trends.
In this edition:
- Financial markets retain a cautious tone with equities and bonds dragged lower by accelerating inflation and rising interest rates
- The market uncertainty has seen a significant sector rotation, lower valuations and higher bond yields. Mega-cap US equity and long-dated government bonds have been hit particularly hard
- Asset managers have lifted their cash level to the highest level for 21 years . There is now a risk that equities overshoot on the downside
- Much will depend on whether the Federal Reserve can engineer a slowdown in inflation without causing a recession. History is not on its side, with a ‘soft landing’ only achieved in three out of 12 previous tightening cycles 
 BoFA Global Fund Managers Survey, If they can’t rally now, 17 May 2022
 The Fed’s Soft Landing Play, Gavekal, 10 May 2022
This article was previously published on Tilney prior to the launch of Evelyn Partners.