In this month's multi-asset views we upgrade credit given more supportive central bank policies. :
With limited improvement in earnings revisions, we retain our neutral outlook, with a preference for emerging markets. Valuations are expensive but the absence of inflation and soft economic data are supportive of bonds in a portfolio context. While the continued rally has made valuations less appealing, supportive central bank policies and selective tactical opportunities have led us to upgrade credit. With the Federal Reserve's (Fed) dovish stance, we have become less worried about the risk of recession.