Four key reasons for adding risk into Q4

October 7, 2022
Four key reasons for adding risk into Q4

It’s probably one of the great understatements to describe markets in the third quarter as “challenging”, with July’s initial bounce in global equities giving way to an ugly 9.3% decline in September. And while it’s a similar story in fixed income, it is noteworthy that Australian fixed income has performed materially better (-1.4% in Sept qtr) than global fixed income (-5.1%).

So the question remains: do we still think the final quarter will bring a more genuine rebound for risk assets? And should we begin to tilt our expectations for a bigger recovery in global markets and in turn, a higher Australian dollar?

In our latest update, Tim Toohey, Yarra Capital Management’s Head of Macro and Strategy, details his four reasons for adding risk to portfolios into Q4.