Renewed concerns over Covid-19, policy actions and weakness in China caused some volatility in markets but we remain risk neutral and focus more on alpha generation and less on market directionality, particularly in credit. We also think central banks will remain broadly accommodative, despite accelerating their taper plans to control inflation. Investors should explore value, quality stocks but identifying companies with pricing power will be key as companies look to pass-on higher input costs to consumers. In addition, real assets exposure could provide inflation protection to investors able to withstand the liquidity risk.
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