Investor Confusion Mounts Amid Recession and Inflation Fears

Investors are facing confusion and pessimism due to the risk of persistently higher inflation and a bleak economic outlook. The uncertainty is leading investors to reduce risk and book profits. The IMF has published its weakest global growth expectations over the medium term for more than 30 years, and fears about an upcoming recession appear to be growing. Looking ahead, the theme for May and June is likely to be a rotation into underperforming stocks year-to-date, which is into value and defensive sectors and taking profits on cyclical and growth sectors.